Search results
Results From The WOW.Com Content Network
Despite Northern Rock appearing to be in a stronger position than other UK banks on paper, [10] it faced a liquidity problem because institutional lenders became nervous about lending to mortgage banks following the US sub-prime crisis. [11] Bank of England figures suggest that Northern Rock borrowed £3 billion from the Bank of England in the ...
People queuing outside a Northern Rock bank branch in Birmingham, United Kingdom on 15 September 2007, to withdraw their savings because of the subprime crisis.. Northern Rock, encountering difficulty obtaining the credit it required to remain in business, was nationalised on 17 February 2008.
Northern Rock continued to sell credit cards under its own brand through The Co-operative Bank until November 2007; the decision to stop was made before the 2007 crisis. [57] In 2006 the bank had moved into sub-prime lending via a deal with Lehman Brothers.
For premium support please call: 800-290-4726 more ways to reach us
The bank had first appeared on the HM Treasury watch list after the Northern Rock problems surfaced, when it became clear that the HBOS funding model closely resembled that of Northern Rock. The bank was offering highly competitive and unprofitable housing market loans, combined with aggressive and high risk commercial lending.
In early August 2007, the American firm Countrywide Financial suffered a bank run as a consequence of the subprime mortgage crisis. [8] On 13 September 2007, the British bank Northern Rock arranged an emergency loan facility from the Bank of England, which it claimed was the result of short
Before the crash, the housing market prophet was warning that subprime loans were probably the “greatest financial problem” for the U.S. economy, and in January 2006 wrote an article titled ...
Michael Burry, who famously shorted subprime mortgages ahead of the 2008 financial crisis, closed out the majority of his regional bank trade in the second quarter, filings with SEC revealed Monday.