Northern Rock seeks further aid as Virgin throws hat in ring

Troubled mortgage lender, Northern Rock, has received further emergency funding from the government, it emerged yesterday. Northern Rock borrowed an additional £2.3 billion from the Bank of England, on top of the nearly £11 billion that it has borrowed so far.

In an attempt to calm depositers' nerves, the Bank of England announced that it would guarantee all deposits at Northern Rock, including those that were made after the crisis began.

In a further twist, Virgin Money is rumoured to be in talks with Northern Rock's management over a possible take-over deal that would see the day-to-day running of Northern Rock handed over to Virgin's financial arm.

Virgin Offers Northern Rock Equity

Associated Press

Fri Oct 12

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