Agree 100% with David. How can any Northern Rock customer trust the word of a Government that lies to us so frequently? Have they found those Weapons of Mass Destruction we were told Saddam had hidden away? - Point made.

Rich, Leeds,

What's this, New Labour promising to privatise banks? Well, if nothing else, this should ensure a property crash. A state run mortgage lending system, I can't think of a better way to guarantee that hardly anyone is able to borrow to buy anything.

Graham, Oxford, UK

Alistair Darling wouldn't do this on Sunday's political programme with Andrew Marr. What has changed?

Pete Balchin, Solicitor , Bristol, UK

Geoff is right, David is wrong....and to suggest that borrowers have anyone to blame but themsleves is typical of the culture of 'its not my responsibility' that we live in. People are responsible for their actions, not the government

simon mawdsley, london,

I hope the bank goes bust, banks have been treating the British people like dirt for years and now they want our sympathy??? They will just have to get by with their overinflated bonuses, oh what a shame.

mark stone, n19 4dl,

I hope the BoE, the FSA and the Treasury are punished for this. Rather than making puffed up statements about what he was personally unwilling to do, Mervyn King should have requested the BoE to inject liquidity into the UK market to maintain the stability and integrity of the financial system - this is it's raison d'etre. This mess would not exist if the financial authorities had done their job of stabilising the markets. Not happy with penalising British banks vs Euoropean and American ones who received the necessary support from their central banks, the BoE then started meddling with the terms a prospective purchaser could expect to make things a thousand times worse.

NRK management should not escape blame either - they knew about the problems 6 weeks ago when the directors and Chairman bought shares in the company to give the impression all was well. Duplicitous obfuscation indeed. The whole lot should be taken to task for this debacle.

M Jeffs, Bucks, UK

How is this going to be blamed on Iran?

Chris Curtis, Auckland,

Why is Northern Rock's an attractive mortgage portfolio? Alan Greenspan has finally announced what we have all know for a couple of years - the British house market is hugely overvalued and will crash. Not might - will. Mortgage portfolios are about the most unattractive thing you could hold when the properties they are loaned on are worth about 40% of the mortgage.As Anatole Kaletsky says - the faint roar of the tidal wave can be heard by all except those who don't want to listen. Fool's Paradise is over. The Porsche will have to go back, the new conservatory cancelled.The ONLY safe place for money now is in National Savings. If you've taken your money out of Northern Rock and put it into another building society or bank you may as well have thrown it into a hole in the sea. The banks are all up the creek, paddleless and clueless - they don't even know what they owe.

eric campbell, harrogate, uk

Isn't it quite incorrect for the Chancellor and others to assert that Northern Rock remains 'solvent ' ?

If it cannot pay it's debts, it must be insolvent and, without Bank of England support, would be bankrupt.

' Viable' might be a more accurate description

Dr. Patrick O'Brien, Birmingham, United Kingdom

Yet again we see the great British public panicking and acting in a herd-like way! Experts have spent the last 4 days telling investors NOT TO WORRY! Why do people not listen to expert advise! The bank is not insolvent and is trading profitably! Get a grip please! It reminds me of the petrol crisis several years ago! You are all making a difficult situation worse!

DAVID KAY, Liverpool,

I guess they need something like the US's FDIC over there. It insures customer's bank accounts specifically to prevent bank runs like this. I don't think there is a major bank here that isn't FDIC insured.

Shaun, Sacramento, California

A buyer must be found quickly for Norhern Rock to stop the run on bank deposits. Speculation in the City is that Bradford & Bingley (B&B), Alliance & Leicester (A&L) are potentially next to face the credit crunch. If depoisiters start withdrawing from B&B and A&L, then people will start withdrawing cash (the herd instinct) from any and all bank accounts. In the 1990s the Japanese withdrew their savings from banks [they were afraid the banks would collapse] and stored those savings under their mattresses. Then the Japanese consumers stopped spending and Japan went into deflationary freefall, from which it has not recovered. If UK consumers start withdrawing cash from all bank accounts, the Japan experience will be repeated here.

Lorna Lion, Houston, Texas, USA

When the Bank of England has basically got to bail out another bank from a financial crisis it smacks of political interference.

Maybe it is about time the overpaid bank executives were made to account for their vile greediness and this looks like the time.

Isnt it about time that financial institutions began to make good profit, not bad profit? Alternatively get a credit reference ageny to process their next bank loans...

Mike, Cotswolds, UK

This seems to indicate mass hysteria - savers are behaving like lemmings. Also the media is not helping with its banner headlines.
Surely the BofE would not have guaranteed funds if this business was not solvent and the comments from Standard Life do not help - yet it it has still invested in the company.
However no sane person would invest all their funds with any institution, no matter how well run that institution, beyond what is guaranteed if that institution fails.

peter griffiths, ammanford, llanelli, wales

Northern Rock was, and still is, a solid bank which has been undermined by the repercussions of the American sub prime mortgage debacle. Although it has consistently outperformed many of its competitors its found itself unable to pass on its mortgage business to other financial institution through normal channels. The loan request to the Bank of England was just that, a request which it has not as yet used.

The hype, innuendo and scaremongering caused by the media has seen branches besieged and online systems swamped with customers trying to get their money out of NR. The subsequent share price collapse will undoubtedly see NR sold to another bank. The reputation of the bank is ruined and the name will disappear from the high street.

The only ones to lose out will be the staff of Northern Rock as there will be inevitable job losses. When this does occur the media should hang their heads in shame. They have driven NR to the brink.

Paul Bainbridge, gateshead, england

If the Northern Rock bank required emergency funding from the Bank of England rumored to be £1billion pounds, how is the bank still solvent if since then it is estimated that over £2 billion had been withdrawn by customers.

Somebody is telling little porkies, or is it the credit line being given by the Bank Of England is a bottomless pit.

How about giving the same treatment to all businesses in the UK, unlimited cash resources if your business model goes belly up.

John, Pwllheli, Wales

Whilst I believe the problems facing Northern Rock are of it's own making,to restore confidence it must now be taken over by another bank as soon as possible, and the best candidate would be LloydsTSB. This would allow LloydsTSB to compete on a fairer playing field against the other big four. In the long term I believe it would be catastrophic to let it fall into the hands of outsiders. It's a pity the BOE and the FSA did'nt allow Talks to continue When Northern Rock first approached LloydsTSB. Perhaps this would have helped to avoid the current situation.

Stanley Green, Colchester, UK

I dont trust my money with drowning banks. Sooner of later they will all go bust. Most of these banks are only greedy sharks. I would rather invest my capital in shares with big companies well established companies. I have withdrawn all of my hard earned over 80,000 pounds. Never agai will I be fooled and buy into their lies.

Peter, Manchester, UK

I do hope that the bank of England has insisted that the directors salaries are reduced by the same level as the share price.

What better way to force responsibility on the directors, whose mess it is.

Suusi M-B, Harenden , Herts

Will the PM accept his responsibility for the mismanagement of the economy over the last ten years that has lead to this currant situation? Don't bother to answer that question, we all know full well he will not, in much the same way this labour government refuse to accept any responsibility for any of the many, many problems their in aptitude has created.

Time for a change I feel. Over to you David!

d case, newquay,

I know that this problem will pass, but it appears to be a sorry indictment of our much vaunted banking control system.

In the lead up to last week's stark announcement, the warning signs must have been there. So who in the Bank of England, FSA or Treasury froze in the headlights?

Who ( and it should probably be a few0 will have the decency to fall on their swords and resign from all the agencies involved?. Also, can we please ensure that we have no "lessons ;earned" speeches - they are nothing but spin ephemera.

It has even made me think that perhaps control should be passed to the Europeans - and that is a very major change in my thinking!!

Stuart, Taunton,

Is there any difference between the Northern Rock and the Government? Both have borrowed and spent like mad, although in the case of the Northern Rock they have acquired some reasonable assets for their money.
But what about my investments in National Savings and Premium Bonds - are they safe? Will they be able to repay them if their is a run as in the case of the Northern Rock? There is no "Lender of Last Resort" for the government, so I think its time to go down to the Post Office (if its still there) to get the necessary withdrawal forms.

Retired, Buckinghamshire, England

I can feel an isolvency followed by a class action coming on...

The UK taxpayer will compensate...

Pete Balchin, Solicitor , Bristol, UK

Why is the Government helping these people.

They have deposited their money to gain a higher rate of interest and hence must face the penalty when things go against them.
There is no free Lunch in the financial sector So you choose your level of saftely based against the rate ofered. Poor rate better saftey.
Added to which the real gainers are the shareholders to whom the governement is now artifically supporting by helping prop up the share price through this aid.

Matt, Manama, Bahrain

Just remember Railtrack and BCCI. Withdraw your money while you can. It easy for the Government to make these statements as it is not their money. These banking problems are part of the reason why the gold price has risen so much.

Adrian, Abu Dhabi, UAE

Yes David from St Albans, you are spot on. 'As we sow so shall we reap'. How do you trust a man that offers you a 2p tax reduction only to find out hours later your total tax has in fact increased. By the way, has Alistair Darling finished his Economics 101 lessons yet? I thought Brown would never let him speak!!!

MARK TAYLOR, DUNFERMLINE,

The Games over. We are only focusing on banks. I am a member of Nationwide and their annual accounts show a majority of their assets are in loans, albeit mortgages. This compared to a miniscule amount of cash available. I wrote a letter in to say it needs to be addressed but I only heard silence. Then I was flabbergasted to learn of a bid for Portman to get their loan book. Now they have more loans as creditors in the 'assets' section against cash, and have paid out in full for Portman too, adding further to their loan position. The accountants at the top must be really worried that the media are not investigating building societies so that they can keep this info under wraps and keeping it hush hush.

Jason Li, Blackburn, Lancashire

The old fools causing the run on the bank should be made to forfeit their pensions unless they put the money back. They clearly don't need to be funded by the rest of us. Why should we guarantee their income when they cause problems for us?

Working people don't have the time to queue or money to withdraw.

They will be bleating about falling house prices next.

Tony, London,

While Northern Rock wen from a staid building society to a plc, it was run by the same management who had no clue how to manage the risks inherent in running liquidity gaps in the balance sheet. Most large banks stress test their liquidity gaps, and even SPVs purchase liquidity backstops -- but NR decided that money was on the tap, as it arbitraged the short term money markets by lending long -- how are they different from a SIV or a conduit? Meanwhile the brilliant management team collected fat salaries and bonuses for their stupid strategy.
Larry, London

Larry, London ,

No offence to those who believe their savings are at risk, its not their fault, but am I being asked to bail out (via tax) the ineptitude and financial mismanangement of bankers?

If so, can I charge them an admin fee? I thought £25 would be fair, but I suppose, if it went to court, I could settle at £12 per transaction.

If I were Chancellor, I would get that lot running the Olympics to sought it out.. oh, on second thoughts...

Jesper Lemons, Prestwich,

You can see that Northern Rock we go down, but the biggest problem we have is the other banks. As the markets start to sell there customers will follow.

oliver , loughborough, UK

Excellent!

Will they now also guarntee the depositers in Alliance and Leicester and Bradford & Bingley? And even Paragon Finance and Kensington?

What next?

So actually all those savers, many of the older generation, who saved in the National Savings Account and whose returns have been much lower as a result and who saved there because of the fact it was a government backed security, did so in vain? Their security is no less government backed than felicity financier whose savings are with dogey deposit takers and whose behaviour has done so much to undermine the system...

Well done Prime Minister (Crash Gordon) Brown Unelect, another sensible lesson to give the public in prudent financial home economics.

And what a sensible impression to give the City...

Pete Balchin, Solicitor , Bristol, UK

What a total mess !!
Why did anybody in the BoE or Northern Rock feel the need to announce this matter publically?
With a government that spends its entire life doing secret things with secret people, I can see no benefit in shouting the granting of an additional loan facility from the the roof tops of our benighted political institutions.
It really emphasises how out of touch the political and financial 'elite' have become to the insecurities and financial stresses that the rest of us have to endure.
The result is a 'run on the bank' something that I thought was history in the evolution of global financial markets.

Paul Houlden, Hereford, UK

Will all deposits at all banks now be guaranteed without limit by the government? If not, why the preferential treatment for NR depositors?

Martin, Guildford, UK

What can one say when the Govenor of the Bank of England advises one day that it is not the BoEs job to prop up financial institutions that are in bad shape as a result of imprudent business practice, and then the next week the Chancellor guarantees deposits! Could I ask the Chancellor to guarantee my deposits if I put them in other fiscal instituions. As a tax payer, the very concept of the government using my money to elimanate moral hazard risk is objectionable in the extreme. It smacks perhaps of political opportunism, and is fiscally very dangerous for the precedewnt it sets. Indeed, I think I may start a deposit taking organisation, run it like Northern Rock, and wait to be bailed out.

Tim F, Rudgwick,

and Alliance & Leicester, Bradford & Bingley. . . . .

Clark, Gen., Switz.

What the hell is this - the Gov't, using the BoE as a proxy, using taxpayers money to bail out an institution that shuld have, quite rightly, gone bust last Friday when it's business model & irresponsible lending have been shown up for what they are.

This is not over by a long way - are the governemnt going to bail out A&L, B&B, HBOS & Barclays too?

What we are seeing is the nationalisation of Banking in the UK - and the taxpayer is paying for it. 100% guaranteed.

Gary, Sawbridgeworth, Herts, UK

This is a typical overeaction to a resolvable issue. The only people to benefit from this is the burglar!

Geoff Skerry, Amesbury, UK

This is a simply fantastic example of how things have changed in this country. Because of the appalling mess the government has made over pensions, tax credits and financial matters in general NOBODY trusts what they say any more, and who could possibly blame them with such an awful track record. If I had funds in Northern Rock you can bet I'd be in the queue. Brown, Darling, the public don't trust you!

David, St Albans, UK