Timeline: One year after nationalisation
February 17th 2008
Chancellor Alistair Darling announces the nationalisation of Northern Rock, following several failed attempts to find a buyer for the ailing bank.
February 18th 2008
Shares in Northern Rock are suspended.
Gordon Brown says the move is “in the best interests of taxpayers”.
March 19th 2008
Northern Rock announces the cut of about 2,000 jobs – about a third of its staff – to be concluded by 2011 under plans to turn around its fortunes.
March 26th 2008
The Financial Services Authority (FSA) admits “a lack of adequate oversight and review” in its handling of the bank but insists it should still regulate the banking system.
March 31st 2008
Northern Rock announces a pre-tax loss of £167.6m in 2007, pledges to repay its £24 billion state loan by 2010 and reveals that former chief executive, Adam Applegarth, will get severance payments totalling £785,000.
April 22nd 2008
The Bank of England unveils the Special Liquidity Scheme (SLS) to swap mortgage assets for government debt. It will run until October 20th 2008.
May 8th 2008
Shareholders in Northern Rock launch a legal challenge over compensation.
July 30th 2008
Northern Rock announces the loss of 1,300 jobs, 700 less than expected, as part of its restructuring plans.
August 5th 2008
Northern Rock announces losses of £585.4m for the first six months of the year. This figure is higher than was expected.
September 7th 2008
The US government bails out Fannie Mae and Freddie Mac, which account for nearly half the outstanding mortgages in the US.
September 15th 2008
Lehman Brothers becomes the first major casualty of the banking crisis. Merrill Lynch agrees to be bought by Bank of America.
September 16th 2008
The US government bails out AIG, the country’s largest insurer.
September 17th 2008
Lloyds TSB acquires HBOS in a government-assisted takeover. The Bank of England extends the SLS to January 30th 2009.
September 18th 2008
The FSA bans the short-selling of stocks until 16th January 2009.
September 29th 2008
The government nationalises Bradford & Bingley.
October 3rd 2008
The FSA announces it will raise the compensation limit for savings from £35,000 to £50,000.
October 8th 2008
The Bank of England cuts interest rates by half a percent.
October 13th 2008
The government bails out the Royal Bank of Scotland (RBS), Lloyds TSB, and HBOS with £37 billion of taxpayers’ money.
November 6th 2008
The Bank of England cuts interest rates by 1.5 percent to 3 percent, their lowest point for more than fifty years.
November 24th 2008
The government announces a stimulus package worth £20 billion to 2010, including a 2.5 percent cut in VAT.
November 28th 2008
The government buys a 58 per cent stake in RBS for £15 billion after shareholders shun the bank’s share offer.
December 31st 2008
The FTSE 100 ends the year down 31.3 percent on last year, the worst fall in its 24-year history.
January 8th 2009
The Bank of England cuts the interest rate by 0.5 percent to 1.5 percent, the lowest point in its 315-year history.
January 19th 2009
The government launches a second bank rescue plan.
January 23rd 2009
The UK officially enters recession.
February 5th 2009
The Bank of England cuts interest rates for the fifth time since October to one per cent, another record low.
February 10th 2009
Former heads of HBOS and RBS apologise for their part in the banking collapse. A former HBOS employee alleges he was fired by Sir James Crosby, now deputy-chair of the FSA, when he questioned the banks’ lending policy.
February 11th 2009
Sir James resigns from the FSA
February 17th 2009
The government faces calls for full-scale nationalisation of most of the UK banking industry.
