Panic at Northern Rock in the UK

Yes, it can happen here, and there. The collapse of Northern Rock has sent shock waves all over the world. When the word came that they would be bailed out by the Bank of England, this, far from reassuring everyone, created a giant panic. Here's the link.
. Of course similar bank runs have happened in the United States, with the chain of banks that Countryside Corp. owns in California. It is unclear if this collapse is due to the British market or to US subprime real estate mortgages. Here are some excerpts from Daily Telegraph (UK-London) coverage from 9/18/07-


High street scramble as savers claim money

By Paul Stokes


They were scenes more reminiscent of the last days of the Weimar Republic, the Great Depression or a stock market crash than those of a typical British high street on an unremarkable Friday morning.
# Northern Rock customers withdraw £1bn of savings

But the news that Northern Rock - one of the country's biggest mortgage lenders - had received emergency funding from the Bank of England was enough to send thousands of its customers rushing to their local branch yesterday, clutching their passbooks, in a desperate attempt to withdraw their money.

Despite being urged not to panic, fears over the lender's financial future meant queues at several branches stretched far out of the door and long into the street outside.

The determination of some to withdraw their money, was typified by 65-year-old Tony Looch at the bank's Moorgate branch, in the heart of London's Square Mile. He wanted to get his hands on his entire £135,000 worth of life savings. "I'm prepared to wait as long as it takes," he said. "I'm taking the lot out if they'll let me have it."