Un clasico: Northern Rock shares fall again


16 Ago 2007

Shares in Northern Rock have slumped again on speculation that the stricken lender will be sold off cheaply. As anger persists over the handling of Northern Rock's rescue, the lender's share price fell a further 23%.

The bank's shares have lost nearly 75% of their value since it was forced to seek emergency Bank of England funding. The continuing slump comes despite the government's pledge to guarantee all Northern Rock deposits held in accounts as of midnight, 19 September.

Sale worries

Northern Rock shares were trading down 58p, or 23.5%, at 199p in early trading on Thursday.
All the potential predators know it [Northern Rock] has no future as an ongoing business because the brand is tarnished

Shares in other banks also fell on Thursday on renewed credit worries despite the Bank of England's move on Wednesday to offer £10bn in liquidity to banks.