Evening Standard - London, September 17th, 2007
What has gone wrong at Northern Rock?
In the great game of global musical chairs Northern Rock was left standing when the music stopped. Britains fifth biggest mortgage lender is unusually reliant on the international bond markets to raise money for the mortgages it advances to borrowers. Fine when confidence is riding high, but risky when the markets no longer want to play ball. When the US sub-prime market collapsed, these markets refused to lend money to banks seen as potentially risky. This left Northern Rock high and dry and forced it to go to the Bank of England for help.
Does that mea...
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