Northern Rock 'not at risk of insolvency'

The Financial Services Authority (FSA), the Bank of England and Northern Rock itself have all moved to reassure worried borrowers over the future of their savings.

Today (September 17th) saw customers continue to queue up outside the bank's branches and its share price fall by a further 40 per cent, but industry figures have insisted that the panic is unwarranted.

The FSA has said that it is confident that Northern Rock is solvent, adding that it was also positive about the industry's attempt to withstand current pressures.

Northern Rock chief executive Adam Applegarth has also said that there is no pressing need to withdraw money from the bank.

Chancellor Alistair Darling, meanwhile, has said that deposits at the mortgage lender are "backed by the Bank of England" and will not be lost.

Conservative leader David Cameron has placed the blame for the trouble on prime minister Gordon Brown, saying that Mr Brown had not "shown awareness of the risks involved" in mounting public and private debt.

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