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| Treasury extends Rock guarantees | Treasury extends Rock guarantees |
| (10 minutes later) | |
| The Treasury has offered to guarantee more of Northern Rock's liabilities at the request of the troubled lender. | The Treasury has offered to guarantee more of Northern Rock's liabilities at the request of the troubled lender. |
| It has offered to cover any loss by financial institutions which provide money to Northern Rock so the bank can operate normal banking services. | It has offered to cover any loss by financial institutions which provide money to Northern Rock so the bank can operate normal banking services. |
| The Treasury has already guaranteed retail deposits held at Northern Rock after the UK's first bank run in living memory in September. | The Treasury has already guaranteed retail deposits held at Northern Rock after the UK's first bank run in living memory in September. |
| The move risks being seen as taking the bank a step closer to nationalisation. | The move risks being seen as taking the bank a step closer to nationalisation. |
| It will also lead to greater financial exposure for taxpayers, who have already lent Northern Rock an estimated £26bn. | It will also lead to greater financial exposure for taxpayers, who have already lent Northern Rock an estimated £26bn. |
| "What this means is that other financial institutions that have lent money to Northern Rock will now have their loans guaranteed," said BBC Business Editor Robert Peston. | "What this means is that other financial institutions that have lent money to Northern Rock will now have their loans guaranteed," said BBC Business Editor Robert Peston. |
| "Plainly Northern Rock feared that there would effectively be a meltdown if that they didn't get this guarantee," he added. | "Plainly Northern Rock feared that there would effectively be a meltdown if that they didn't get this guarantee," he added. |
| "This is not very far in my view from actual nationalisation." | "This is not very far in my view from actual nationalisation." |