Since the global credit crunch which lead to money markets seizing up over the summer, Northern Rock has struggled to borrow enough money to run the day to day affairs of the business. The Bank of England offered a penalty rate loan as a lifeline as Northern Rock employed US banking giant Citigroup to find a solution to its crisis. Citigroup later offered a £10bn loan to Northern Rock at a lower rate of interest than the Bank of England's penalty rate, which could leave Northern Rock more appealing as a potential takeover target.
MPs are to hear a public explanation from Northern Rock today over this recent crisis which has engulfed the mortgage lender.