"Northern Rock Deposit Guarantees Extended by U.K. Treasury
2007-12-18 02:46 (New York)
Dec. 18 (Bloomberg) -- Northern Rock Plc, the U.K. bank
bailed out by the Bank of England two months ago, had its
wholesale deposit guarantees extended by the U.K. Treasury to a
``wider range'' of borrowing.
The guarantees will be widened to include all
``uncollateralized and unsubordinated wholesale deposits'' and
to cover liabilities under any ``uncollateralized derivative
transactions,'' the U.K. government said in a Regulatory News
Service statement today. The guarantee will also cover mortgage
repurchases by Northern Rock's Granite securitization unit.
The Treasury said its earlier arrangement to protect retail
and wholesale depositors ``will remain in place during the
current instability in the financial markets.'' Northern Rock
will pay ``an appropriate fee'' for the guarantee, it said."
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