The Lifeboat Launched

Margaret Reid

Chapter 2 in The Secondary Banking Crisis, 1973–75, 1982, pp 11-19 from Palgrave Macmillan

Abstract: Abstract Having eventually, in their midnight marathon, cobbled together the £72 m support package for Cedar Holdings, the embattled bankers snatched a few hours’ sleep. But hopes that the developing wider crisis would be damped down by the Cedar rescue quickly proved unjustified. Cedar’s share quotation was duly suspended at the start of stock market dealings on the morning of Thursday 20 December, and the news of the rescue package was announced at about the same time. But the public revelation of the crisis at such a sizeable group sent new shock waves through the City, as the extent of the flight of deposits which had been taking place was realised. Rumours of problems at other fringe banks swept through the financial community and, within two-and-a-half hours of the Stock Exchange’s opening, share of many secondary banks dropped by about a third, wiping millions of pounds off their value.

Keywords: Central Bank; Money Market; Rescue Operation; Banking Business; Support Operation (search for similar items in EconPapers)
Date: 1982
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-05286-8_2

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DOI: 10.1007/978-1-349-05286-8_2

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