Northern Rock
| Northern Rock | |
|---|---|
|
|
 |
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| Seat | Newcastle upon Tyne , UK |
| legal form | Corporation |
| founding | July 1, 1965 |
| Website | www.northernrock.co.uk |
| Business data | |
| Total assets | 18561000000 Sterling (2010) |
| insoles | £ 16.7 billion (2010) |
| Employee | 4,310 (2010) |
| management | |
| Corporate management |
Ron Sandler (Non-Executive Chairman) |
Northern Rock was a financial company in the United Kingdom . The former headquarters of Northern Rock is at the Regent Center outside of Newcastle upon Tyne in north-east England . The company emerged from the Northern Rock Building Society when it went public in 1997 . Northern Rock shares were traded on the London Stock Exchange on the FTSE 100 with ISIN GB0001452795 until February 19, 2008 . In the wake of the financial market crisis , Northern Rock was nationalized in 2008 and taken over by Virgin Money in 2011 .
history
Northern Rock was considered the eighth largest bank in Great Britain in spring 2008. The Northern Rock Building Society was the result of a merger in 1965 between the Northern Counties Permanent Society (founded in 1850) and the Rock Building Society (founded in 1865).
Northern Rock had locations in Ireland , Denmark and Germany . In mid-2007 the company had 76 branches, which looked after 1.4 million customers with a mortgage volume of 145 billion euros. The institute sponsored the Newcastle United football club and the Newcastle Falcons rugby club, as well as the Durham County Cricket Club and Middlesex County Cricket Club.
US mortgage crisis
Due to the shortage of liquidity on the money market as a result of the subprime crisis in 2007 , the company ran into refinancing difficulties . As a result, there was massive withdrawal of funds by customers. From Friday, September 14th to Monday, September 17th, customers withdrew around two billion pounds (approx. € 2.9 billion) from the bank's accounts, so that on September 17th, the counter opening hours had to be extended by master the onslaught of frightened investors. In response, UK Treasury Secretary Alistair Darling said that if necessary, the Bank of England and the government would enact regulations to guarantee all deposits with Northern Rock during the current financial instability.
On February 17, 2008, Darling announced that the financial institution would be temporarily nationalized to avoid bankruptcy. The background was that none of the offers made by the bank up for sale were high enough “under the current market conditions”. There were offers from the Virgin Group of billionaire Richard Branson as well as one from the management of Northern Rock. Previously, the government's guarantee statement had not been able to end the deposit outflow. With Northern Rock, a private company was nationalized in Great Britain for the first time since the 1970s.
Sold to Virgin Money
On November 17, 2011, the UK Treasury Department, HM Treasury, announced the sale of Northern Rock for £ 747 million (€ 873 million) to Virgin Money , a subsidiary of the UK Virgin Group . Subject to antitrust approvals, the takeover should be completed by January 2012. The "Northern Rock Asset Management" division, in which risky securities and loans were spun off in 2010, will remain with the British government and will be wound up over a longer period of time.
See also
Web links
Footnotes
- ↑ finanzen.net (ed.): Northern Rock plc. ( HTML [accessed January 10, 2012]).
- ↑ Financial Times Germany (ed.): Like the virgin to money . January 10, 2012, p. 15 .
- ↑ Handelsblatt : Rise and Fall of Northern Rock , September 17, 2007
- ↑ BBC (Ed.): Northern Rock deposits guaranteed . September 17, 2007 ( HTML [accessed September 30, 2012]).
- ↑ tagesschau.de : Northern Rock is temporarily nationalized , February 17, 2008
- ^ Handelsblatt : Government intervenes in Northern Rock , Handelsblatt, September 18, 2007
- ↑ Handelsblatt : State guarantee cannot stop panic , September 18, 2007
- ↑ Focus.de : Scandal bank Northern Rock goes to Virgin Money , accessed on November 18, 2011