Learning English - Words in the News
14 September, 2007 - Published 10:31 GMT
Northern Rock crisis
The Bank of England has stepped in to provide emergency financial support to one of Britain's biggest mortgage lenders. Northern Rock has had difficulties financing its lending because of the recent crisis in the financial markets. This report from Robert Peston:
Northern Rock has been one of the fastest growing British banks. But it's now set to become famous for reasons it would rather keep quiet. It's become the first bank in years to seek emergency funding from the Bank of England in its role as 'lender of last resort'.
Northern Rock's problem is not that it's making colossal losses or is bust, but it feared that it could run out of cash. Why? Because in the market turmoil of the past few weeks investors and other banks have been increasingly reluctant to lend to it. It's been tainted by the problems experienced by those who lent to US home buyers, especially those with poor credit histories.
Robert Peston, BBC
for reasons it would rather keep quiet
to seek emergency funding
lender of last resort
making colossal losses
run out of
with poor credit histories