The US private equity group is rumoured to have set aside £15 billion to buy out the floundering lender, causing shares to jump by 10 per cent in early Wednesday trading. However it is a case of wait and see as to whether this specualtion will come to a head.
This could be the glimmer of light at the end of the tunnel Northern Rock has been hoping for, after market conditions caused it to seek help from the Bank of England on ____ and speculation ran rife over whether the bank would be able to find a buyer.
Northern Rock’s shares have plunged in value by around 80 per cent in the space of just over two weeks and the bank lost numerous customers after panic spread and thousands withdrew their savings. This was fortunately halted by the Government when it promised to guarantee existing customers’ deposits.
The crisis has impacted upon lenders across the board, with the effects of the US sub-prime crisis rippling out into the international mortgage industry and not just the stricken Northern Rock.
