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Article: BRAND THERAPY - NORTHERN ROCK: Not quite so rock solid.(Northern Rock PLC)
- Article from:
- Brand Strategy
- Article date:
- October 9, 2007
CopyrightCOPYRIGHT 2007 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Northern Rock is making headlines as the first bank in years to seek emergency funding from the Bank of England to guarantee its cash flow despite the fundamental solvency of the business.
While Northern Rock and politicians are asking for investors not to worry, the intense media coverage beginning on 13 September 2007, contributed to what was the first 'run' on a bank for years with customers queuing outside branches to take out savings and logging onto its website, which eventually crashed under the strain.
The troubled bank is now the subject of a takeover bid. Meanwhile, share prices have fallen by almost three quarters since the crisis began. ...