How much sympathy do Northern Rock savers really deserve?

It's easy to feel sorry for those frantic savers who queued up to rescue their life savings. But how well-informed was their investment? And what about some sympathy for the shareholders?

The more I contemplate the Northern Rock affair, the angrier I become. This is not because I have a deposit with the Northern Rock or a mortgage. I don't own a single share in the company, although I dare say that whoever manages my pension or insurance funds might have plenty. But what really bothers me is this: Why does the Government bend over backwards to ensure that Northern Rock's depositors suffer no loss, while treating shareholders in Northern Rock as if they have brought this whole mess upon themselves and deserve to suffer?

I have got my life-savings in there,' was the cry from most of the distressed customers that queued outside Northern's branches, desperate to get their money out.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Tom worked as a fund manager in the City of London and in Hong Kong for over 20 years. As a director with Schroder Investment Management International he was responsible for £2 billion of foreign clients' money, and launched what became Argentina's largest mutual fund. Now working from his home in Oxfordshire, Tom Bulford helps private investors with his premium tipping newsletter, Red Hot Biotech Alert.