Police called as panicking savers besiege bank

Police in the North had to be called to help control anxious crowds of Northern Rock savers intent on emptying their accounts today.

Despite numerous assurances and pleas for calm, customers lined up outside branches across the UK for a second day in a bid to withdraw their money from the beleaguered bank.

Northern Rock agreed to extend opening hours until 2pm to accommodate the crowds and vowed to open early on Monday, when further queues are expected.

Some experts are now predicting that as a brand name Northern Rock is now so damaged that it will disappear from the High Street within a year.

It is believed that customers have withdrawn more than £1bn (€1.47bn) in savings since news broke on Thursday that the bank had sought emergency funding from the Bank of England.

The UK’s fifth largest mortgage lender had been struggling with cashflow problems caused by the credit crunch in the wholesale money market.

And despite reassurances that their money is safe, many have raced to remove their cash from the Northern Rock.

The British Bankers’ Association yesterday urged customers to “calm down”.

It said: “Northern Rock is a sound and safe bank and there is absolutely no reason for either mortgage customers or savers to worry.”

But anxiety among the bank’s 1.5 million savers remains high, resulting in today’s continued “run on the bank”.

Mike Mellon, a 74-year-old customer queuing in Sheffield, was one of those intent on removing his savings.

He said: “I’ve got a number of accounts here. It’s my life savings.

“I think the risk is pretty low but you never know.”

Staff at a branch in Glasgow city centre were forced to call for police support to help deal with “boisterous customers”.

A spokesman for Strathclyde Police said: “A call came in asking for assistance as some of the customers were getting a bit boisterous.

“The manager was spoken to and police advised the store to close.”

Officers were also required to help bank staff deal with customers too far back in the queue at a branch in Sheffield.

Elsewhere, other tactics were employed in a bid to keep people in the queues happy.

In Manchester, Pauline Longstaff, manager at the Albert Square branch, handed out chocolates as she attempted to reassure customers that they would be seen to.

Ms Longstaff said: “We have had no problems with keeping order. In fact we went through three tins of Quality Street.”

But such gestures will do little to improve Northern Rock’s standing amongst worried customers.

Financial expert Justin Urquhart Stewart, of Seven Investment Management, said savers are wrong to panic.

He said Northern Rock was “no Barings” and that it had huge assets and the Bank of England behind it.

“It is not in anyone’s interest for it to go bust. But despite that, some individuals are saying ’I’m going to take my money out’.”

Mr Urquhart Stewart added that such was the impact of the crisis Northern Rock, as a High Street brand, would be gone within 12 months.

He said: “I expect that in a year’s time Northern Rock will not exist. As a brand it is shot.

“It is a great shame. A perfectly good business will be strangled by circumstances.”

Northern Rock’s share price slumped in recent months, making it more susceptible to a takeover bid from a rival bank, he added.

A spokesman for Northern Rock apologised for the inconvenience caused to customers who could not be seen at their branch today.

On Monday, Northern Rock counters are set to open an hour early – at 8am – in anticipation of another surge of savers hoping to take their money elsewhere.