TIMELINE-Northern Rock nationalised
(Reuters) - The government announced the temporary nationalisation of troubled bank Northern Rock on Sunday, rejecting two rival bids to take it over.
The following are key dates in the bank's troubles:
Aug 9, 2007 - Date pinpointed by regulators and the bank itself as the date "the world changed" for Northern Rock. The European Central Bank pumps a record 94.8 billion euros into Europe's money markets after BNP Paribas freezes withdrawals on funds hit by U.S. subprime market crisis.
Sept 14 - Northern Rock says the Bank of England has stepped in to provide support, triggering the first run on a major UK bank in over a century despite reassurances from regulators the lender is not bust. The bank's shares crash over 30 percent.
Sept 15 - Customers besiege the bank, ignoring official reassurances.
Sept 17 - The government steps in to guarantee deposits at Northern Rock in a bid to stop the run.
Sept 25 - Under pressure from the Treasury and regulators, Northern Rock cancels its interim dividend and confirms it is in "preliminary discussions with selected parties".
Oct 9 - Northern Rock gets another lifeline as the government offers to guarantee new retail deposits.
Oct 10 - Northern Rock shares jump over 40 percent after SRM Global, a hedge fund run by former UBS trader Jon Wood, takes a stake of over 4 percent.
Oct 12 - Billionaire Richard Branson says his Virgin Group wants to rescue the bank, heading a consortium that would inject cash and stabilise the bank's finances.
Oct 19 - Bryan Sanderson replaces Matt Ridley as chairman.
Nov 16 - Adam Applegarth resigns as chief executive. He is later replaced by Andy Kuipers.
Dec 7 - An investment group led by veteran troubleshooter Luqman Arnold makes a long-awaited rescue proposal as another suitor, U.S. buyout firm J.C. Flowers, pulls out of the bidding.
Jan 10 - Goldman Sachs says it is seeking investors in China and the Middle East to help fund a takeover.
Jan 11 - Northern Rock sells a 2.2 billion pound portfolio of mortgages to U.S. bank JP Morgan to help repay loans from the Bank of England.
Jan 15 - Shareholders back proposals to curb some of the board's powers but stop short of forcing it to seek approval for any asset sales. The vote is forced by leading shareholders.
Jan 16 - Shares crash over 20 percent as Prime Minister Gordon Brown leaves open the option of nationalisation.
Jan 21 - Government announces plan to convert about 25 billion pounds loaned to Northern Rock into bonds to smooth the way for a private sector takeover but effectively tying taxpayers to the bank for years to come.
Feb 4 - Deadline set by government for final bids to be received from potential suitors.
Feb 13 - Government tells two bidders to improve their offers.
Feb 17 - Government rejects offers, deciding to take Northern Rock into temporary public ownership.
- Tweet this
- Share this
- Digg this
- Barclays profits fall as investment bank income sags
- Libyan militants overrun Benghazi special forces base as chaos deepens
- African girls to sue British Airways over alleged abuse by pilot
- Carnage at U.N. school as Israel pounds Gaza refugee camp |
- EU and U.S. announce new sanctions on Russia over Ukraine |