Below is an edited BBC interview with the Governor of the Bank of England talking about Northern Rock.
Some fascinating comments
– he would have wished to have had a mechanism to be able to transfer out retail accounts
– because of the inadequacies of the deposit protection scheme i.e not 100%, he refused to tell people that their money was safe when the rational thing was to withdraw their money
– the Bank had to intervene because of the number of retail depositors involved and the systemic risk that would have been created
– the photos of queues at a British Bank was the most damaging one to the reputation of the Bank