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Article: TIMELINE: NORTHERN ROCK'S JOURNEY TO DISASTER.(News)
- Article from:
- The Journal (Newcastle, England)
- Article date:
- March 27, 2008
CopyrightCOPYRIGHT 2008 MGN Ltd. 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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The search for a solution to Northern Rock's woes began after a run on the bank last September. But the genesis of the crisis can be traced back to the beginning of the sub-prime fiasco in the US some five years before.
Between 2002 and 2004 Billions of dollars-worth of mortgages are loaned to people on low incomes in the US. When the US Federal Reserve starts to hike interest rates from June 2004 onwards, many fall into arrears and default on payments. The subsequent fall-out impacts on investors around the world.
Late July/early August 2007 The UK stock ...