More on Northern Rock or "Northern Exposure"

Customers withdrew $2 billion yesterday... today, Northern Rock branches around the U.K. had lines as long as 140 feet...

of customers stretching outside their doors, seeking to withdraw deposits for a second day after the BOE authorized emergency funding to the NON sub prime mortgage lender.

Northern Rock will pay a penalty interest rate of close to 7% to borrow funds from the BOE. U.K. Chancellor of the Exchequer Alistair Darling:

"British banks do have strong balance sheets. I am determined that we will maintain the stability of the banking system."

The Nattering One muses... keep the stiff upper lip my Darling Alistair... and get ready...

for more UK banking bailouts because as pointed out in Alchemy? II.... in respect to Corporate MBS holdings...

Looks like the UK is good for $60 Billion of which $50 Billion is Corporate ABCP, the largest amount of any foreign holder.