July 25 2007

Northern Rock, Britain's fastest-growing mortgage lender, announces pretax profits up 26.6 per cent to £346.6 million

August 9

World markets are rocked when BNP Paribas suspends three funds. Central banks are forced to intervene, pumping €100 billion into the markets

September 4

Libor, the interbank lending rate, rises to a ten-year high

September 5

Bank of England offers an extra £4.4 billion to help ailing British banks

September 12

Mervyn King tells the Treasury Select Committee the Bank of England will not bail out banks over their 'risky' behaviour but says he will take steps to prevent sever economic damage

September 13

Banks scramble for the Bank of England relief fund

It emerges that Northern Rock has been granted emergency Bank of England funding in the latter's capacity as lender of last resort

September 14

Savers rush to empty their Northern Rock accounts

September 17

The Chancellor Alistair Darling intervenes with a promise to guarantee all deposits of Northern Rock savers

September 19

Bank of England announces a surprise £10 billion cash injection into the British banking system

September 20

Mervyn King faces accusations of being "asleep at the wheel" but defends his decision not to intervene and save Northern Rock sooner

September 25

Northern Rock cancels its shareholder dividend, and says it is in talks with parties who may wish to buy the bank

October 1

Chancellor announces that the scheme to protect savers will be extended to guarantee 100 per cent of the first £35,000 of savings

October 9

Treasury will protect new deposits at Northern Rock

October 12

Sir Richard Branson's Virgin Group emerges as leader of a consortium interested in buying Northern Rock

November 16

Northern Rock chief executive Adam Applegarth resigns

November 26

Northern Rock names Virgin as preferred bidder

Luqman Arnold's investment group Olivant will enter talks that could threaten Virgin's status as preferred bidder

December 7

Luqman Arnold's Olivant Group sets out a rescue plan for the bank including a promise to repay £15 billion of government money

December 12

Olivant threatens to abandon its bid

December 13

Adam Applegarth leaves the company earlier than planned

January 4 2008

Chancellor reveals plans to extend the powers of the FSA to prevent a future Northern Rock-style crisis

January 8

It emerges that another key shareholder, hedge fund SRM, has warned the Chancellor not to nationalise the bank for less than a fair price

Janury 11

Northern Rock agrees to sell 2 per cent of its mortgage assets to US bank JP Morgan

January 15

Northern Rock shareholders gather at an EGM and reject proposals from RAB Capital and SRM that would prevent the bank negotiating a sale without consent from its investors

January 21

Northern Rock shares rise 42 per cent as the Chancellor announces a plan to convert Northern Rock's £25 billion Bank of England loan into Government-guaranteed bonds before selling them to investors

Potential bidders are given until February 4 to come forward with rescue proposals based on the Treasury's plans

January 26

MPs accuse the FSA of a "systematic failure of duty" over Northern Rock

February 4

The Virgin-led consortium and Northern Rock's own board submit rescue plans for the bank to the Treasury

February 6

It emerges that 2,400 jobs could go if the bank's board takes over, and 1,000 jobs if Virgin wins

February 17

Chancellor Alistair Darling announces that Northern Rock will be nationalised. He says neither of the two offers represent enough value for the taxpayer

Ron Sandler is confirmed as chairman

March 26

FSA admits failings in its handling of the Northern Rock crisis

March 31

Northern Rock reveals a pretax loss of £167.6 million in 2007 and says it will be "significantly loss-making" in 2008

It says it will repay its £24 billion state loan by 2010. Former chief executive Adam Applegarth will get a payoff totalling £1 million

April 2

EU announces an investigation into the government bailout of Northern Rock and its effect on competition

May 8

Northern Rock shareholders mount a legal challenge over compensation they are to receive

July 23

Gary Hoffman, vice-chairman of Barclays, is appointed new chief executive of Northern Rock, replacing Andy Kuipers, who has worked at the bank for 20 years

July 30

About 1,300 staff - fewer than expected - will be made redundant under the bank's restructuring plans

August 5

The bank discloses a worse-than-expected £585 million loss in the first six months of this year

September 9

The Government appoints an independent valuer for Northern Rock, Andrew Caldwell, who will receive a fee of £4.5 million

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