03/28/2008 02:45 am ET Updated May 25, 2011

UK Govt Guarantees Bank Customers' Savings As Crisis Looms

The government last night issued an emergency pledge to Northern Rock savers that their money is safe, after a third day of queues outside branches threatened to spread across the banking system.

Northern Rock's shares shed a third of their value yesterday and the sense of crisis heightened as shares in rival mortgage lenders dropped sharply - Alliance & Leicester by a third and Bradford & Bingley by 15%. The falls raised fears that the contagion from Northern Rock was starting to spread through the financial system.

Read more on The Guardian (U.K.)