Northern Rock

About Northern Rock

The first British bank run in 150 years. Northern Rock, a building society turned bank based in Newcastle, relied heavily on wholesale funding rather than deposits. When credit markets froze in August 2007, Northern Rock could not refinance its borrowings. Depositors queued outside branches to withdraw savings, creating iconic images of panic. The Bank of England provided emergency liquidity. Chancellor Alistair Darling eventually guaranteed all Northern Rock deposits to stop the run. Northern Rock was nationalized in February 2008. The bank was split into good and bad banks and gradually wound down. The brand was eventually retired. The Northern Rock crisis was the first major sign of the coming global financial crisis in Britain.