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Between a rock and a hard place: 10 years on from Northern Rock

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Between a rock and a hard place: 10 years on from Northern Rock

  1. 1. Between a rock and a hard place: 10 years on from Northern Rock Lord Alistair Darling, former Chancellor of the Exchequer Nicky Morgan MP, Chair of theTreasury Select Committee Torsten Bell, Director of the Resolution Foundation @resfoundation #NorthernRock Wifi: 2QAG_guest p: W3lc0m3!! 1
  2. 2. 10 years on Northern Rock A Timeline Torsten Bell, Resolution Foundation
  3. 3. 10 years on Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009 Worries build about American subprime mortgages, but no one panics… “the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system” Ben Bernanke Federal Reserve Chairman
  4. 4. 10 years on First signs of stress at financial institutions emerge: Bear Stearns, BNP Paribas and some German banks exposure to sub-prime losses becomes public Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  5. 5. 10 years on The crisis reaches Britain: Robert Peston, the BBC’s economic editor, breaks the story of Northern Rock’s request for emergency support Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  6. 6. 10 years on The first UK bank run in a hundred years occurs Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  7. 7. 10 years on The government steps in to guarantee deposits… Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  8. 8. 10 years on …and then nationalises Northern Rock Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  9. 9. 10 years on The action heads to the States Fed underpins JP Morgan rescue of Bear Stearns Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  10. 10. 10 years onThe financial crisis becomes a British economic crisis House prices fall and 100% mortgages disappear Unemployment starts an increase which will total over 800,000 Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  11. 11. 10 years onAlistair Darling gets optimistic… Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  12. 12. 10 years on Lehman Brothers files for bankruptcy – sparking chaos Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  13. 13. 10 years on Lloyds agrees to buy HBOS Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  14. 14. 10 years on Global banking is under stress Ireland and later Iceland seeing their banking systems collapse Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  15. 15. 10 years on The UK pulls out all the stops: Recapitalisation, not just extra liquidity, takes centre stage The US follows suit Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  16. 16. 10 years on Darling becomes the first Scottish big spender: Autumn Statement announces a £20bn fiscal stimulus to support economy Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  17. 17. 10 years on A UK recession during the second half of 2008 is confirmed Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  18. 18. 10 years on The Bank heads to zero and beyond UK interest rates cut to record low of 0.5% The programme of quantitative easing is launched Early 2007 Summer 2007 13 September 2007 14 September 2007 17 September 2007 17 February 2008 March 2008 April 2008 August 2008 15 September 2008 17 September 2008 Autumn 2008 8 October 2008 24 November 2008 January 2009 March 2009
  19. 19. Between a rock and a hard place: 10 years on from Northern Rock Lord Alistair Darling, former Chancellor of the Exchequer Nicky Morgan MP, Chair of theTreasury Select Committee Torsten Bell, Director of the Resolution Foundation @resfoundation #NorthernRock Wifi: 2QAG_guest p: W3lc0m3!! 19

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