Northern Rock customers panic

LONDON, Sept. 15 (UPI) -- Britain's banking leaders rushed to reassure the public after customers withdrew nearly $2 billion from Northern Rock, one of the largest mortgage lenders.

Northern Rock's stock shares fells by 31 percent Friday as Britain's chancellor and bank leaders tried to reassure its 1.4 million savings customers, 800,000 mortgage holders, and thousands of shareholders, that it was not in serious danger, The Telegraph reported Saturday.

The Bank of England stepped in to steady Northern Rock by guaranteeing up to $63 billion. It was the first time since 1973 that the Bank has bailed out a High Street lender, The Telegraph reported.

Other major British banks, including Bradford & Bingley, Alliance & Leicester and Paragon, issued statements insisting they were not in similar trouble, The Telegraph reported.

Northern Rock's deposits exceed $40 billion, which meant that Friday's average withdrawal amounted to about $1,400 per person. The panic jammed Northern Rock's phone lines, crashed its Web site and packed its 72 branches with customers monitored by security guards and police.