I thought that government guaranteed deposits were supposed to stop bank runs. But apparently it does not work all that well. This from the Telegraph…..

About £1 billion was withdrawn by panicking Northern Rock customers on Friday, as fears for the bank’s future sent shock waves through the City and caused its shares to crash.

The company’s phone lines were jammed for most of the day, its website crashed and the 72 branches were besieged by thousands of worried customers after it admitted having to ask the Bank of England for emergency funding.

I have yet to read a good explanation for what Northern Rock’s problem is. But it is not going to be an independent company for long at any rate.