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Under-Fire Bank Apologises To Customers (UK)

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shing to withdraw their savings.

Despite the panic, analysts remained resolute Northern Rock will not go bust.

The chief financial watchdog reiterated that it judged Northern Rock to be solvent and that savers could continue to deposit and withdraw funds.

Problems experienced by customers online or at branches were "entirely logistical" and "in no way related to the bank's solvency", the Financial Services Authority said.

The company had been earlier urged its 1.5 million savers to "calm down" after it was forced to seek emergency support from the Bank of England.

A spokesperson for the bank said it: "apologised to customers and was disappointed to see uncertainty caused."

But he assured customers that reports claiming branches had run out of cash or cheques were false, adding that whilst the company's website is slow, it had not been taken down.

Huge queues continued to form on Saturday, after billions of pounds had been taken out on Friday.

Police officers were called out to one branch to deal with "boisterous customers".

Savers in Manchester were handed chocolates and fruit juice to reduce tension and some branches extended their closing time from 2pm to help cope with demand.

Long queues at branches

One man queuing in Sheffield said: "I don't care if the risk is small, there's plenty of other places to put my money and I just don't believe what they are telling me."

That branch closed at 2pm and the details of customers who could not be served were taken.

The Glasgow branch closed at 12pm and plain clothed officers called out as struggled to keep customers under control.

"The manager was spoken to and police advised the store to close," said a spokesman for Strathclyde Police.

The UK's fifth biggest mortgage lender has been hit by soaring costs in wholesale lending markets, where it borrows cash to fund its mortgage business.

Alongside the emergency funding, the Newcastle-based bank warned it could take a profits hit of nearly £150m due to the money market turmoil.

The British Bankers' Association urged worried customers to "calm down".

It said: "Northern Rock is a sound and safe bank and there is absolutely no reason for either mortgage customers or savers to worry."