- LONDON (AP) -- Shares of Northern Rock PLC, one of Britain's largest mortgage lenders, tumbled another 30 percent Monday as customers, driven by fears of insolvency, made a run on the bank and withdrew billions.
- Treasury Secretary Alistair Darling sought to assure depositors that their money was safe, even as former U.S. Federal Reserve Board chairman Alan Greenspan warned of potential trouble for Britain's booming housing market.
- The British Broadcasting Corp. reported Sunday that customers had withdrawn nearly 2 billion pounds ($4 billion) from Northern Rock accounts, though CEO Adam Applegarth refused to give a figure.
- Speculation about a takeover ran rampant.
- "The images of customers queuing up in the high street has done irreparable damage to the franchise," said Nic Clarke, an analyst for Charles Stanley & Co. in London. "There is value in Northern Rock for a predator with a strong balance sheet but they would have to move quickly to save whatever is left of Northern Rock's reputation," he added.
- "Extensive news coverage of people queuing up to withdraw their savings from Northern Rock could well fuel the fears that other financial institutions will be affected and increase general concern about the economic outlook," added Howard Archer, chief U.K. economist with Global Insight.
Takeaway: This can't be good. That said, the US market is basically ignoring it, as it has all bad news the past 3 weeks.
