BusinessBusiness RecoveryFSA: Northern Rock ‘solvent’

FSA: Northern Rock 'solvent'

Watchdog moves to reassure market that troubled bank is not in danger of collapse

fsa logo

The Financial Services Authority has
issued a statement to reassure the market that mortgage lender
Northern Rock is not in danger of
collapse after there was a rush of customers to withdraw their funds.

‘The FSA reiterates that it judges Northern Rock to be solvent and that
savers can continue to deposit and withdraw funds,’ the FSA said in a statement.

The FSA said problems customers had faced in withdrawing money were not
linked to its financial health and were ‘entirely logistical’.

Northern Rock share price collapsed on Friday after borrowers tried to
withdraw their money after the lender agreed an emergency loan from the
Bank of England to cope with a
lack of liquidity and high interest rates in money markets.

FSA chairman Callum McCarthy added: ‘To be absolutely clear, if we believed
that Northern Rock was not solvent, we would not have allowed it to remain open
for business.’

Further reading:

KPMG called in at mortgage lender

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

1w Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

1w Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

4w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor