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Northern Rock

Volume 704: debated on Tuesday 14 October 2008

asked Her Majesty's Government:

Whether deposits with Northern Rock are covered by the same guarantee provided to other banks; and [HL5332]

Whether Northern Rock bond investments are covered by the Treasury as with other public institutions. [HL5333]

The Treasury's guarantee arrangements for Northern Rock plc apply to certain retail and wholesale deposits. Details of the guarantee arrangements are set out in Treasury press notices published last year on 20 and 21 September, 9 and 11 October and 18 December.

As announced on 11 October 2007 the guarantee arrangements for Northern Rock supplement and do not replace any compensation provided by the Financial Services Compensation Scheme, which the Financial Services Authority has recently extended to cover 100 per cent of the first £50,000 of deposits.