Panic in city as hundreds besiege Northern Rock

Sep 15 2007 by Liza Williams, Liverpool Daily Post

HUNDREDS of panicking customers queued outside Liverpool’s Northern Rock branch yesterday to draw out their life savings, after news the bank had to ask for an emergency loan.

Crowds, including many pensioners concerned about their retirement funds, queued from around 8am waiting for hours to get their money from the Lord Street bank.

The mass rush to withdraw nest-eggs followed Thursday’s announcement that the company had taken a loan from the Bank of England, after it had difficulty raising funds from commercial markets.

The decision was apparently taken after consultation with the Treasury and the Financial Services Authority.

Northern Rock said yesterday its profits could be up to £147m lower than expected this year, as it struggles with soaring borrowing costs.

Scenes of queues outside branches were reported across the country as confidence in the bank waned.

Among those outside the Liverpool branch at lunchtime was Jill Stenton, who had travelled from Chester to withdraw her cash.

She said: “I’ve come to get my money. I went on the internet yesterday and transferred some funds, but had to come here to do the rest. The Chester branch only deals with mortgages.

“I need this money to live on. It is all right for them to say there is no panic, but my sister and I are building an apartment abroad and we need this money to stay afloat.

“I feel they have not managed everything as well as they should have.”

Alice Evans, 68, from Kirkby, said: “People are panicking and I feel guilty for standing here but that is human nature, I suppose. We are making each other feel worse. I am doing it for safety rea- sons; I can’t risk losing my money, I have my retirement fund here.

“I think we are all being stupid, but there you go.”

Carol Clare, from Bebington, had been in the queue since 10am but was prepared to wait: “I am concerned about it, even though the chief executive came on the radio and said there is no need to worry.

“I need this money. We have been here for an hour and have hardly moved, but I will wait.”

One pensioner, from Wallasey, added: “At least Northern Rock are being honest. Who knows what trouble other banks are in. I expect we will find out soon enough.”

Yesterday, the Newcastle-based group’s chief executive, Adam Applegarth, stressed that the Bank of England's support “reflects a recognition that Northern Rock is solvent”.

MARKET REPORT: PAGE 14

lizawilliams