Northern shock

For a bank to seek long-term support from authorities is often the first step to losing its independence. The UK’s Northern Rock may be no different. The bank’s bailout from the Bank of England may tide it for now over its liquidity problems. But for a longer term fix, Northern Rock may need to turn to a well-capitalised buyer. Northern Rock’s problems stem from its need to refinance about £3-4bn of securitised mortgages over the next month. Given the current turmoil in the credit markets, and ...