Northern Rock: Key dates
The British government on Sunday announced the nationalization of Northern Rock, which owes the government some 25 billion, or $49 billion.
The following are key dates in the banks troubles:
Aug. 9, 2007 - The day pinpointed by regulators and Northern Rock itself as the date “the world changed.” The European Central Bank pumps a record \95 billion, or $139 billion, into European money markets as credit dries up and BNP Paribas freezes withdrawals on funds hit by the collapse of the U.S. subprime mortgage market.
Sept. 14 - Northern Rock says the Bank of England has stepped in to provide support, triggering the first run on a major British bank in over a century, despite reassurances from regulators that the lender is not bust. The banks shares plummet more than 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 a former UBS trader, Jon Wood, takes a stake of over 4 percent.
Oct. 12 - Richard Branson says Virgin Group wants to rescue the bank, heading a consortium that would inject cash and stabilize its 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 the veteran troubleshooter Luqman Arnold makes a long-awaited rescue proposal as the 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 portfolio of mortgages to JPMorgan Chase to help repay loans from the Bank of England.
Jan. 15 - Shareholders back proposals to curb some of the boards powers but stop short of forcing it to seek approval for any asset sales. The vote is forced by leading shareholders.
Jan. 16 - Northern Rock shares tumble more than 20 percent as Prime Minister Gordon Brown leaves open the option of nationalization.
Jan. 21 - The government announces plan to convert about 25 billion loaned to Northern Rock into bonds to smooth the way for a private sector takeover, but it also takes the lenders debts onto the public balance sheet, effectively tying taxpayers to the bank for years to come.
Feb. 4 - The deadline set by the government for final bids to be received from potential suitors.
Feb. 13 - The government tells two bidders, Virgin Group and the banks own management, to improve their offers.
Feb. 17 - The government rejects the bids, deciding to take Northern Rock into temporary public ownership.
