Worried savers besiege Middleton bank

Northern Rock's Middleton branch has endured a similar run of withdrawals as other branches throughout the country as people worried about their life savings besieged the bank.

Savers had not been comforted by Government reassurances that their money was safe.

The bank’s crisis was sparked when it applied to the Bank of England for emergency funds leading to fears it is on the verge of collapse.

Around £2 billion is estimated to have been withdrawn since Thursday as customers across the country lined up outside branches and shares fell by 32 per cent on Friday.

Northern Rock boss Adam Applegarth has moved to reassure customers it is “business as usual” and the bank will recover but that people were entitled to withdraw their money.

Northern Rock has struggled to raise money to finance its lending ever since money markets seized up over the summer.

It is built around mortgage business and raises most of the money it provides by borrowing from banks and other financial institutions. The bank is expected to be taken over by a rival.