Former Bank of England governor says that the bailout of North Rock bank should have been a secret
The bailout of Northern Rock bank should have been a secret to prevent panic, a top banker has claimed. According to Mervyn King, the then Bank of England governor, he advised the deal to bail out Northern Rock bank be kept secret to prevent panic. The day after BBC revealed the bail by the Bank of England on 13 September 2007, thousands of the bank’s customers led the first run on a British bank since 1866. The following month, the Bank of England did make secret loans worth £61.2bn to RBS and HBOS.