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Saturday, September 15, 2007

Northern Rock: Lines Return

by Calculated Risk on 9/15/2007 04:39:00 PM

From the Telegraph: Customers outside a Northern Rock branch in Kingston Upon Thames.Customers outside a Northern Rock branch in Kingston Upon Thames

From the Telegraph: Police help to disperse Northern Rock queues (hat tip DannyHSDad)
Northern Rock has apologised to customers who spent a second day queuing to withdraw money after the company asked the Bank of England for emergency funding.

A spokesman has asked customers to remain calm and repeated assurances that money is available.

The bank's website had crashed but is currently running with a message asking users to be patient and claiming that transactions will be dealt with.

Long lines formed at 72 branches across the country even before counters opened this morning.
Here is a Bloomberg article: Northern Rock Experiences Second Day of Withdrawals (hat tip energyecon)

A key question is: Does the UK have something similar to the U.S. FDIC insurance?

I've found this: the Financial Services Compensation Scheme
1. I have my money in a joint account in a High Street bank. How would FSCS pay compensation if the bank failed?

The compensation limit of £31,700 applies to each depositor for the total of their deposits with an organisation, regardless of how many accounts they hold or whether they are a single or joint account holder. In the case of a joint account FSCS will assume that the money in that account is split equally between account holders, unless evidence shows otherwise.

This means that each account holder in a joint account would be eligible for compensation up to the maximum limit.