Abstract
According to financial history books, the concept of lender of last resort dates back to 1797, when Francis Baring so described the Bank of England. A century later, the Bank of England (BoE) obliged by saving his institution from bankruptcy, but it did not repeat the gesture a second time in 1995, and the venerable Barings Bank went bankrupt; several economists applauded the decision not to intervene.
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Notes
Deutsche Bundesbank, Monthly Report, September 2000.
Merrill Lynch, Interest Rate Committee Forecast, 19 November 2007.
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© 2009 Dimitris N. Chorafas
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Chorafas, D.N. (2009). Northern Rock: a Case Study. In: Financial Boom and Gloom. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/9780230235830_7
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DOI: https://doi.org/10.1057/9780230235830_7
Publisher Name: Palgrave Macmillan, London
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