Friday, September 14, 2007
A crisis of epic proportions
Northern has a massive £113bn of loans and other assets on its balance sheet, having worked aggressively to grow market share during the first half of this year. It grabbed nearly 19% of all new mortgage lending, knocking Halifax off the top slot. Northern's shares have already almost halved in value this year. Unfortunately for investors, the worst is probably still to come. Other big UK banks may not have the same structural problems as Northern because of their major high street presence and broader spread of businesses, but they will all be affected by the crisis of confidence. So will the rest of us, as the values of our pensions, investments and perhaps our own homes fall.