Chancellor Alistair Darling, speaking after the stock market closed on Monday, said that if necessary the government and the Bank of England would guarantee all existing Northern Rock deposits during the current instability.
This intervention appears to have calmed market nerves, as shares in Northern Rock currently stand 11% up on yesterday.
The banking system and the indeed the whole financial system can only work if people have confidence in it; it seems that the actions by the Chancellor, certainly in the short term, have restored some confidence.
That being said, the "shorters" will do their best to test the resilience of the share price.
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