- 2007 UK's 5th largest mortgage lender - mortgage values of £53 billion
- Mortgages based securitised investments
- LIBOR Trading fall US Sub Prime crisis coincided with northern rock failure
Why??
- Changes in the interbank lending markets
- Precipitated by concerns over amount, status and location of debt
- Business model put the bank under pressure, funding gap very big, should have been liquidated...
However, the Bank of England grants loan £27 billion, speculation and panic leads to bank run - government had to step in
COPY OFF PPT SLIDE 'PLAN NO. 1'
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