On September 14, not long after the open letter was released to the public on the joint name of the Financial Supervisory Authority, the Bank of England and the Treasury, the entire market was completely stunned. What people didn't expect was that such a behemoth as Northern Rock Bank would unknowingly fall into a liquidity crunch. Although the main thrust of the open letter was that the three powerful institutions were sending a signal to stabilize the financial institutions, in the eyes of ordinary people, these were not enough to dispel their fears, and soon a storm of deposit withdrawals spread.

The run has officially begun.

In Birmingham, in Manchester, in London, in York, crowds began to gather in front of all North Rock branches. Despite their anxiety, the men kept order, waiting in line at the door of the bank, waving passbooks and the like, ready to withdraw their deposits once the doors opened.

The crowd quickly caught the attention of passers-by, and those who had neglected to watch the news got the news from the news on the side of the street. And the news reporters were even more unwilling, and almost immediately sent people to the nearest branch of the Northern Rock Bank to report on the run here.

“…… This is the North Rock branch in north London, and it's breaking news that people are ready to withdraw their deposits after the Bank of England and Treasury published an open letter to the market, and people are ready to withdraw their deposits in Zài. Let's interview the people in line......"

The good-looking hostess directed the camera to move closer to the team, and she chose a middle-aged man in a trench coat. This man is handsome and well-dressed, and he has an appetite for the hostess. It's just that his brows are tightly knit at this time, and his face is sad, which makes people look a little distressed.

"Hello sir, I'm the BBC presenter Sasan, what's going on here, and do you know what you're doing in line here?"

The hostess Tingting walked up to the middle-aged man and handed the microphone to him, but her delicate body had not yet reached the man's body. The tangy scent has already arrived. This made the man's spirit suddenly lifted, and the nervous emotion on his face immediately relaxed a lot.

Taking the microphone, the man smiled gentlemanly at the hostess, and then said methodically: "I'm Colloche." Working at Barclays Capital. I heard that there was a problem with the operation of Northern Rock Bank. So come here and get ready to withdraw the money in my account. ”

"Barclays Capital? It seems that you are an industry insider, I wonder what you think about the situation at Northern Rock Bank? ”

As soon as I heard the introduction of the other party. Sasan's eyes suddenly lit up, and he didn't care about the prompt of the director in the headphones, and the question came out of his mouth like a barrage, "It is said that there are rumors that Northern Rock Bank may go bankrupt, do you agree with this statement?" Also, what do you think of that open letter from the Bank of England? Also, I wonder what you professionals think about the sudden crisis at Northern Rock Bank? ”

After moving two steps forward towards the group, Colocchi touched the tip of his nose and replied with some embarrassment: "Miss Sasansan, I am only a bond trader, not an economist, and I have a hard time answering these questions of yours. However, the news broke out very suddenly, so I couldn't help but be a little flustered, and I was ready to withdraw the deposit here as much as possible. As for where things will eventually go, I can't answer it personally, and you should ask the executives of Northern Rock Bank this question. ”

After hesitating for a moment, the middle-aged man named Coloche turned his head to the camera and said with a solemn face: "If you have a deposit in the North Rock Bank, I might as well take it out immediately, yes, right now." ”

The solemnity of these words made Sassani feel very satisfied, and the sensation she sought was in the man's speech. Of course, this Coloche is not a to, it is precisely because he is a bond trader that he knows the severity of this situation, so he rushed here at the first time. Although he is a VIP customer of the bank, there is still any difference between ordinary customers and VIP customers at this time, so he can only queue up among ordinary customers.

Northern Rock Bank also has an online money transfer business, which Collot had also thought about. However, when he opened the transfer system of Northern Rock Bank, he was stunned to find that the server was extremely slow, and the reason for this situation was naturally that there were too many login users and the server was under too much pressure. In this case, the server could crash at any time, and if something went wrong, it would be worse, so he had to come to the bank to transfer the property himself.

In just a few minutes of interviewing, the camera has captured several cash carts speeding into the bank, apparently carrying cash. After a few more questions, Coloche had already shut up and said no more, and the hostess Sasan shook her head in disappointment, thanked Colocchi, and then interviewed several people who were waiting in line for the withdrawal, and then returned the picture to the host in the studio with satisfaction.

At this time, the broadcast plan of the BBC Finance channel had been disrupted, and during the interview in the Sassanian field, the host of the studio, Jimmy . Savile was in urgent discussions with his team, and a list of banking and finance was quickly put out, and staff called in the order of the list to ask if they would be willing to be interviewed by the BBC by phone, and someone quickly answered in the affirmative.

By the time the screen cuts to the studio, Jimmy's team is ready, and after a brief summary of the scene from the scene, he picks up a phone call from an unnamed banking executive to talk to him about North Rock.

“…… This was done in such a hurry that our peers were shocked. It has to be said that in the first half of the year, Northern Rock Bank grew too fast in the housing loan market and was already the leader in the entire industry. And because of the mortgage crisis in the United States, the whole market has begun to notice the danger of this kind of lending, and Northern Rock Bank is deeply involved. So for them, the problem is very strict. In addition, Northern Rock's liquidity is generally made up by short-term lending, which is an aggressive bank, although this approach can make up for the lack of reserves at a certain time, but when the market is tight, there is no liquidity to borrow, so they have to go to the central bank to borrow. I think this should be the reason for the joint announcement of the central bank and the Ministry of Finance and other departments today......"

"So what do you think the future holds for Northern Rock Bank?" Jimmy tilted his head slightly, listening to the lecture earnestly, at the bottom of the TV screen. The situation of the branches of Northern Rock Bank from all over the country is still live. By this time the door had been opened, and the depositors waiting outside the door were methodically entering the bank, and Jimmy was just in time to ask the question that most people had in mind, "Or maybe it would be more appropriate for me to ask." As an industry insider. Do you think Northern Rock will eventually face the risk of collapse and bankruptcy? ”

This time the other party did not respond immediately. After pondering for a long time, he said leisurely: "This question is difficult to answer. It mainly depends on the market's confidence in Northern Rock and the level of support from management. If we can reverse the panic of depositors in the shortest possible time. I believe that the crisis of Northern Rock Bank can naturally be self-defeating. The best way to reverse this unfavorable situation is to have enough cash to meet the withdrawal needs of depositors, and it is probably cash that is scarce at Northern Rock now, and this depends on the determination of management to maintain the bank's position. Therefore, we still have to take a closer look at the future direction, and it is still too early to draw conclusions. Of course, even if I lose some of the interest, I have to withdraw my deposit as much as possible, because no one really knows what will happen in the future. It is important to know that although the deposit insurance system has been implemented, if there is a large-scale run, even the insurance company may not be able to withstand such a blow. ”

"And I've also heard the news that traders at Northern Rock are looking around the world, and I think they're thinking about how they can save themselves if management doesn't intervene. It may be that they are selling or pledging assets to raise the cash they need, and at this time, the other party will definitely go on a rampage of price reduction, so a chain reaction may happen soon. ”

In the end, the anonymous person said with emotion, his tone was full of depression, which may be out of regret for his peers, but not out of emotion about the run? You know, in Britain itself, there has been no run for a hundred years.

The so-called deposit insurance system refers to the establishment of an insurance institution by the collection of various types of depository financial institutions that meet the requirements, and each depository institution pays insurance premiums to it as an insured according to a certain proportion of deposits, establishes a deposit insurance reserve, and provides financial assistance to the member institutions or directly pays part or all of the deposits to the depositors when the member institutions have a business crisis or face bankruptcy and bankruptcy, so as to protect the interests of depositors, maintain bank credit, and stabilize the financial order.

Under this system, the risk of the deposit is borne by the insurance institution, and according to the proportion of the deposit, the lower the depositor, the higher the insurance premium, depositors under £2,000 can get the full amount in the event of bank bankruptcy, while depositors between £2,000 and £30,000 can only get 90%, and so on.

Jimmy thanked the anonymous person for his analysis, and after briefly recounting the runs that were taking place at the Northrock branches, he dialed the second person, a financial analyst named Condra.

"What is certain is that something similar has happened and the market's expectations for Northern Rock Bank will be significantly reversed. We all thought of it as a highly profitable and fast-growing financial institution, and although their credit rating was downgraded because of the mortgage, I still gave it a 'hold' rating. But now it seems that the company's operation has indeed undergone a serious crisis, beyond the imagination of the market. I can't give you a specific number, but what I do know for sure is that there will be a big drop in the market today, and no one knows where it is expected. ”

"The decline in the share price could further put pressure on the cash flow side of Northern Rock, which is a cycle in which if they can't solve the problem in the short term, they are very likely to be bought by someone else, and more strictly bankrupt liquidation." Therefore, the management of Northern Rock Bank must do everything possible to dispel the doubts of everyone, including market investors and ordinary depositors, otherwise there is only a dead end. ”

While Condra was talking, the market had already opened, and after the stock of Northern Rock Bank opened, it pulled out a long red line, fell directly by 10%, and continued to fall, as if it was verifying the truth of what he said. (To be continued......)

PS: Thank you to the book friends for the angry wasters, Happy Luoba for voting for the monthly ticket! Thank you book friends for my money, ah, ah, Dong Lao's reward for this book! It's great to be able to see the monthly pass and tipping every day, although there are many things that delay the normal idea, but the author will continue to persevere, cheer for a better tomorrow for this book!