A few weeks ago, the news arrived that a bank in the United Kingdom had some financial problems. But nobody had thought that the problems with ‘Northern Rock’ were so big.The bank had not enough money to help all the people so it lent 3 billion British Pound at The Bank of England. That is about 4,3 million Euro.
The past week everybody who has a bank account at Northern Rock started to worry.
Almost everyone reacted the same, they started to take their money of the bank account. This reaction is the end for Northern Rock.
According to the ‘Financial Times’ the 3 billion British Pound is equal to 10% of the bank accounts. The Prime minister of the United Kingdom wants that the government create the same system as in the United States of America. There, all the bank accounts are protected against a bankruptcy. Meanwhile the government has promised to pay for all the bank accounts, so nobody will lose their money.
My opinion about this: I thought that in the economical en political system of today it was impossible that a bank goes bankrupt. Especially a bank in Europe, where they have al those control organisations. Last year we have seen that it was almost impossible that a big bank goes bankrupt. Because there are so many controls to see of everything is still ok.
Source: Tijd.be
(Bram)
1 comment:
I think it's unbelievable that in times like this, a bank can go bankrupt. There are so strict rules and there is a lot of control, that i can't understand that the bank can have troubles. I hope foor the customers that the will get al they money back, because it would be a shame that they will lose their money through a bad governance of the bank.
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