November 19, 2007

Northern Rock disappointed with bids (AP)

A general view of a Northern Rock branch in York, northern England  Monday Nov. 19, 2007. The beleaguered mortgage lender has warned of more shareholder misery after admitting rescue proposals are 'materially below' the firm's current value. Northern Rock, which relied on short-term borrowing, ran into trouble in September when the subprime lending crisis in the United States made banks wary of extending credit. The Bank of England has since loaned the bank an estimated 23 billion pounds (US$47 billion; 32 billion). This type of state aid can be made for six months only under European Union rules. (AP Photo/ John Giles, PA)AP – Shares in Northern Rock PLC, Britain’s biggest casualty of the global credit squeeze, plunged more than 20 percent Monday after the stricken mortgage lender revealed that potential rescue bids were significantly below its current share price.

Permalink • Print

Trackback uri

http://www.jolinszsells.com/281/northern-rock-disappointed-with-bids-ap/trackback/