Northern Rock has shown several problems due to the credit crunch. The lender is having problems, which means the depositors and taxpayers may be left unprotected if action is not taken. It seems that parliament has several options open for Northern Rock and that all options need to be evaluated before dismissal of any of the solutions. It seems a tactical move by Darling was to protect the bank customers and bail out the lender with taxpayers cash through the bank of England.
Darling believes that the government should guarantee deposits and that it actually doesn’t affect the taxpayer because the deposits stay in the bank. Darling believes that when the depositors are guaranteed by the bank their savings are safe. Therefore they do not need to pull out their savings from the bank and create a larger problem. The guarantee will also be on the account unless the bank has notified the depositor in the proper way. Although Darling and others see the frustrations the situation is causing they are still trying to protect their customers and help reduce the threat. Northern Rock may be sold as a way to solve some of the issues, but that is still being discussed.