January 21, 2008 / 8:32 AM / 12 years ago

TIMELINE-Troubles at Northern Rock

(Reuters) - The following are key dates in Northern Rock’s troubles:

Aug 9 - 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 (70.6 billion pounds) 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 he 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.

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.

2008

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 at an emergency meeting back proposals to curb some of the board’s powers but stop short of forcing it to seek approval for any asset sales.

Jan 16 - Shares crash over 20 percent as Prime Minister Gordon Brown leaves open the option of nationalisation.

Jan 21 - Government announces plans to convert the billions 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.

Sets suitors February 4 bid deadline but says bank would be temporarily nationalised if the offers do not meet its criteria.

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