U.K. to lift guarantee on Northern Rock deposits
LONDON (MarketWatch) -- The U.K. Treasury said Wednesday that it will withdraw the 100% guarantee on deposits held at nationalised mortgage lender Northern Rock on May 24. The guarantee was put in place in 2007 as the government attempted to stop a run on the bank after it had to seek emergency funding from the Bank of England. Once the guarantee is lifted, savers will continue to be protected by the Financial Services Compensation Scheme, which currently guarantees the first 50,000 pounds of deposits at all U.K. banks. The decision to lift the guarantee follows the bank's restructuring earlier this year, in which it was split into a "good bank" comprising the savings business and new loans, and a "bad bank," which holds riskier old loans
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