Northern Rock shares rise
Updated on 18 September 2007
Shares in the troubled bank climb 12 per cent after the chancellor's promise to protect savers' deposits.
There are signs that the assurances over money in the Northern Rock bank are at last having an effect.
From the queues outside branches, it appears fewer people have been trying to withdraw their savings following the chancellor's promise to protect their deposits.
The company's share price has also started to recover. Shares in Northern Rock rose more than 12 per cent.
And confidence in other banks appears to be rising. Alliance and Leicester, which saw one third knocked off its share value yesterday, climbed back 20 per cent.
Despite the chancellor's assurances, promises and guarantees, some queues returned to Northern Rock branches this morning - for the fifth day.
At Kingston a handfull arrived at five in the morning. Others had come from abroad.
Despite the chancellor's assurances, some queues returned to Northern Rock branches today.
Northern Rock took out full-page newspaper adverts today, admitting "troubled times" but insisting it would prevail.
It comes after the government took the unprecendented step of underwriting all Northern Rock saving deposits - with an estimated value of £28bn.
That decision was discussed in cabinet this morning. If something goes wrong now, the taxpayer will foot the bill. But there has been no word yet on exactly where that money will come from.
Of course, the government hopes and expects it will never have to pay up.
