New statement about Northern Rock crisis today by Nina Gotzmannova

His name may be sweet, but his message definitely not. Alistair Darling, the Chancellor of the Exchequer, will deliver his statement about Northern Rock crisis to the House of Commons today. But the customers still may feel safe. The government will extend its financial guarantee over the savings of Northern Rock customers. The crisis began in September this year, when Northern Rock, one of the top five mortgage lenders in United Kingdom, asked the Bank of England for support. Although they were not in real troubles, they just had some liquidity problems, the customers panicked. The clients of Northern Rock began to withdraw their savings from their accounts. They were even able to wait several hours in a long queue to get their money home. But the customers shouldn't be so worried. On 17 September, when the clients withdraw almost £2, good news came. The British government and the Bank of England announced they would guarantee all the savings in the bank. Recently the Treasury, which is overseen by Alistair Darling, confirmed that it would extend the guarantee over all deposits made, because first it was guaranteed only moves until 19 September are safe. It means all new accounts will be safe too. The last ones who should be worried are the local sport clubs. Northern Rock is a proud sponsor of local football club Newcastle Union, local rugby union club Newcastle Falcons, local basketball club Newcastle Eagles and several more sport undertakings. The famous English loyalty and passion for sport may be enough guarantees for the clubs to get their money and represent their sponsor.

related story: http://uk.news.yahoo.com/epolitix/20071010/tpl-darling-set-for-northern-rock-statem-0a1c1a1_1.html

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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