Northern Rocked

BBC Radio 4's Money Box Saturday 15 September at 1204 BST On Radio 4 and Online Programme transcript (64KB, 16 pages)

Britain's fifth largest mortgage lender, Northern Rock, has urged customers not to panic at news that it's to receive emergency funding from the Bank of England.

Some customers have withdrawn their savings.

While others are anxious that their banking transactions with the lender have not been processed.

Money Box looked at this latest effect of the global credit squeeze and what it means to borrowers and savers.

We were joined by Andy Kuipers, executive commercial director, Northern Rock, as well as Angela Knight, chief executive of the British Bankers' Association and Justin Urquhart Stewart, managing director, Seven Investment Management.

Further information:

Northern Rock market data

What if Northern Rock goes bust?

'Business as usual' says N Rock

Northern Rock shares plunge

Northern Rock: Reaction

Authorities' statement on Northern Rock loan

Q&A: Northern Rock crisis

Northern Rock gets bank bail out

External links and help lines

Have your say: Banking

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UK, US Economy

Can the Federal Reserve boost world markets?

Next Tuesday, 18 September, sees the keenly awaited meeting of the Federal reserve.

The US economy has been under pressure, as the retail, housing and industrial markets all slumped last month in reaction to the "credit crunch".

So, will the Federal Reserve decide to cut interest rates?

And if they do, as some analysts predict, then which rates will they cut?

To give us their views and to discuss how the decision will affect the UK and US markets we were joined by John Authers, global investment editor for the FT in New York and Douglas McWilliams, chief executive at the Centre for Economic and Business Research.

Further information:

Further signs of US economic pain

Dollar hits new low versus euro

Yuan hits new high versus dollar

European economy 'sound' - Trichet

Bush moves to ease lending crisis

US shares rebound drives markets

Timeline: Sub-prime problems

External links and help lines

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Banking: mortgages and savings

Your payments may increase if your fixed-rate mortgage matures

Northern Rock's current troubles clearly show how the global market woes are affecting high street mortgage lenders.

In the light of their situation, we asked about the implications for other mortgage lenders.

Some tracker mortgage rates have been rising, and yet, there are fixed-rate mortgages on offer now at lower rates than before.

The other side of the coin, as we reported last week, is that savers are doing very well.

But people are now questioning whether cash savings are as safe as we thought. What would happen if a bank went bust?

To discuss any additional changes we might expect in the mortgage industry, and further possible repercussions for savers, we were joined by David Hollingworth, mortgage expert with London and Country.

Further information:

Abbey blames rate rise on markets

Credit fears spark fresh action

Bank moves to ease credit jitters

Mortgage fears on market turmoil

Your Money Guide, Mortgages and housing

External links and help lines

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BBC Radio 4's Money Box was broadcast on Saturday, 15 September 2007 at 1204 BST.

The programme was repeated on Sunday, 16 September 2007 at 2102 BST.