Northern Rock: a day to remember

It was not an iceberg that caused the crash of Northern Rock and fortunately there was no loss of life; but it will be remembered, like the sinking of the Titanic, for years to come. None of us had seen queues of worried depositors outside bank branches before. We can remember it happening in It’s a Wonderful Life, but this was real life; and the pictures went round the world.

The affair must have damaged the Bank of England’s standing among other central banks. People say it is the first such event since Overend, Gurney in 1866. Although there have been numerous bank failures since then, none has involved queues of voters.

The bankruptcy of Overend, Gurney was momentous. Crowds gathered in Lombard Street clamouring to withdraw deposits, causing widespread panic and bankruptcies of other firms. But it was not a high street retail bank — Gurney & Co of Norfolk, which became part of Barclays, was a separate business, though there were family connections.