New York Times: "Northern Rock’s Troubles Demoralize Its Hometown"

Today's New York Times (4 February 2008) has an interesting article on the effect of the problems of the Rock on Newcastle:

From his office in the outskirts of this city in the northeast of England, Robin Ashby, a public relations executive and shareholder in the troubled British lender Northern Rock, can see a large construction site where Northern Rock is building the latest extension to its headquarters.

The cranes and scaffolding are remnants of better times, when Northern Rock was among the most successful financial services companies in the country and helped a region economically ravaged by the collapse of the coal and shipbuilding industries in the 1970s get back on its feet.

But in September, a shortage of funds caused a run on the bank, which could now face nationalization, should an effort being led by Prime Minister Gordon Brown’s government fail to find a buyer.

“That would be a grievous blow to us,” said Mr. Ashby, whose investments in Northern Rock shares dropped to $500 from $10,000 in six months. “Financial services were one of our only saviors in the region.”