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| Version 2 | Version 3 |
|---|---|
| Northern Rock gets new guarantee | Northern Rock gets new guarantee |
| (about 1 hour later) | |
| The Treasury has agreed to protect new savings deposited at the troubled Northern Rock bank. | The Treasury has agreed to protect new savings deposited at the troubled Northern Rock bank. |
| The decision extends a previous guarantee for savers, made during last month's banking crisis, that covered deposits made up to 19 September. | |
| The extension provides a further breathing space for the bank as it considers whether it can remain independent or should be taken over. | The extension provides a further breathing space for the bank as it considers whether it can remain independent or should be taken over. |
| Northern Rock said it was paying a fee for the guarantee. | |
| "These arrangements will cover all retail deposits including future interest payments, movements of funds between accounts and term deposits for the duration of the term," said a statement from the Northern Rock. | "These arrangements will cover all retail deposits including future interest payments, movements of funds between accounts and term deposits for the duration of the term," said a statement from the Northern Rock. |
| It added that the guarantee, which provides a 100% safety net in the event that the bank goes bust, would last "during the current instability in the financial markets". | It added that the guarantee, which provides a 100% safety net in the event that the bank goes bust, would last "during the current instability in the financial markets". |
| It is plausible that the protection constitutes unfair state aid Robert Peston, BBC business editor Read Robert Peston's blog Northern Rock share price | It is plausible that the protection constitutes unfair state aid Robert Peston, BBC business editor Read Robert Peston's blog Northern Rock share price |
| "Accordingly, all retail savings - for both existing and new depositors - remain guaranteed, safe and secure," it said. | "Accordingly, all retail savings - for both existing and new depositors - remain guaranteed, safe and secure," it said. |
| It has emerged over the past few weeks that the bank has been forced to borrow about £10bn from the Bank of England to keep going. | It has emerged over the past few weeks that the bank has been forced to borrow about £10bn from the Bank of England to keep going. |
| It confirmed that it had received several approaches to buy part or all of the bank. | It confirmed that it had received several approaches to buy part or all of the bank. |
| The bank now thinks it will have made a decision by February 2008 on its "future options". | The bank now thinks it will have made a decision by February 2008 on its "future options". |
| The Northern Rock's overall bill for the costs of the Treasury, the Bank of England, and its advisers, is now likely to run up to £50m. | The Northern Rock's overall bill for the costs of the Treasury, the Bank of England, and its advisers, is now likely to run up to £50m. |
| News of the new savings guarantee boosted Northern Rock's share price, and by midday it stood up 35p, or 20%, at 207.5p. | News of the new savings guarantee boosted Northern Rock's share price, and by midday it stood up 35p, or 20%, at 207.5p. |