> Bank runs like from the movie "Its a wonderful life" - they don't happen anymore.
Another example of a bank run is the bank run of Northern Rock on the 14th September
2007. This was the biggest banking problem in the United Kingdom since the banking crisis in
the seventies, this was also the first bank run in the United Kingdom in 150 years. Eventually,
this resulted in the nationalization of Northern Rock. It is interesting to analyze this bank run
because it is one of the most recent bank runs in Western Europe. Furthermore, the bank
run from Northern Rock is a special case because it was a ‘reversed bank run’. Normally
during a bank run, a lot of depositors first withdraw their money, due to lack of confidence
for example, and then the bank will as a result of the huge withdraws get into a liquidity
crisis. However, in the case of Northern Rock, the bank first got into a liquidity crisis and as a
result of that, depositors withdrew their money from the bank.
https://arno.uvt.nl/show.cgi?fid=116241
It certainly looks like a bank run - the scenes in London today fulfilled the dictionary definition.
And heading north to Nottingham, and Middlesbrough, the same extraordinary scenes. savers forming long queues to drain their life savings from Northern Rock.
Banking -- an industry built on credibility, confidence and trust. But the Rock looks wrecked even in its home town of Newcastle.
Deposit guarantees should prevent this. But even after an extraordinary unlimited lending facility granted by the Bank of England and agreed by the Chancellor, customers preferred the sight of real cash.
https://www.channel4.com/news/articles/business_money/the%2B...