Northern Rock is a British bank. It experienced this summer what Chris Giles, Economics Editor of the Financial Times, calls "the first mass run on an English bank since 1866." (FT.com: Oct 25, 2007)
Northern Rock had a peculiar business model: In Mr. Giles' words, the Bank of England characterized Northern Rock "with its dependence on securitisation, the concentration of its asset base in mortgages and the narrowness of its margins - [as] an outlier in British banking."
Where was the lender of last resort? "The Bank [of England] now acknowledges that officials did partly fumble the lender of last resort operation for Northern Rock.
Showing posts with label Central Banks. Show all posts
Showing posts with label Central Banks. Show all posts
Saturday, December 8, 2007
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