Northern Rock gets bank bail out

The Bank of England has agreed to give emergency financial support to the Northern Rock, one of the UK’s largest mortgage lenders, the BBC has learned.

However this does not mean that the bank is in danger of going bust, Business Editor Robert Peston says.

There was no reason for people with Northern Rock savings accounts to panic, he added.

The bank has struggled to raise money to finance its lending ever since money markets seized up over the summer.

The decision for the Bank of England to become the “lender of last resort” is extremely rare – and comes after consultation with the Treasury and the Financial Services Authority.

BBC NEWS | Business | Northern Rock gets bank bail out

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