US Subprime MortgageMarket (C): Global Credit Crunch and Crisis at Northern Rock
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Code : ECC0030
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Region : US |
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Introduction: On September 13th 2007, Northern Rock, one of UK's top-five mortgage lenders, requested the Bank of England (BoE), as lender of last resort , for an emergency financial support. BoE announced that it would. A Bank run began the following day as the panicked retail depositors, fearing that the bankmay become insolvent, withdrew their deposits. By September 18th 2007, the BoE had to step in and gave unconditional sovereign guarantee on all the retail deposits held by Northern Rock. Seven of its board members, including its chairman Matt Ridley and CEO Adam Applegarth, have resigned due to this crisis. |
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