Between a rock and a hard place: 10 years on from Northern Rock
1. Between a rock and a hard place: 10
years on from Northern Rock
Lord Alistair Darling, former Chancellor of the Exchequer
Nicky Morgan MP, Chair of theTreasury Select Committee
Torsten Bell, Director of the Resolution Foundation
@resfoundation #NorthernRock
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3. 10 years on
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Worries build about American subprime mortgages, but no one panics…
“the troubles in the subprime sector on the broader housing
market will likely be limited, and we do not expect
significant spillovers from the subprime market to the rest
of the economy or to the financial system”
Ben Bernanke
Federal Reserve Chairman
4. 10 years on
First signs of stress at financial institutions emerge:
Bear Stearns, BNP Paribas and some German banks exposure to sub-prime losses
becomes public
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5. 10 years on
The crisis reaches Britain:
Robert Peston, the BBC’s economic editor, breaks the
story of Northern Rock’s request for emergency support
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6. 10 years on
The first UK bank run in a hundred years
occurs
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7. 10 years on
The government steps in to
guarantee deposits…
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8. 10 years on
…and then nationalises
Northern Rock
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9. 10 years on
The action heads to the States
Fed underpins JP Morgan rescue of Bear Stearns
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10. 10 years onThe financial crisis becomes a British economic crisis
House prices fall and 100% mortgages disappear
Unemployment starts an increase which will total over
800,000
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11. 10 years onAlistair Darling gets optimistic…
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12. 10 years on
Lehman Brothers files for bankruptcy – sparking chaos
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13. 10 years on
Lloyds agrees to buy HBOS
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14. 10 years on
Global banking is under stress
Ireland and later Iceland seeing their banking systems collapse
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15. 10 years on
The UK pulls out all the stops:
Recapitalisation, not just extra liquidity, takes centre stage
The US follows suit
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16. 10 years on
Darling becomes the first Scottish big spender:
Autumn Statement announces a £20bn fiscal stimulus to support
economy
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17. 10 years on
A UK recession during the second half of 2008 is confirmed
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18. 10 years on
The Bank heads to zero and beyond
UK interest rates cut to record low of 0.5%
The programme of quantitative easing is
launched
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19. Between a rock and a hard place: 10
years on from Northern Rock
Lord Alistair Darling, former Chancellor of the Exchequer
Nicky Morgan MP, Chair of theTreasury Select Committee
Torsten Bell, Director of the Resolution Foundation
@resfoundation #NorthernRock
Wifi: 2QAG_guest p: W3lc0m3!!
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