pursuing numerous lines of inquiry and at great pace. detectives have been searching a house in sunbury—on—thames in connection with the attack on the london tube. surrounding properties were evacuated earlier, surrey police have just told residents that they may return home. at least four people have died in a crash on the m5 motorway in south gloucestershire. a lorry went through the central reservation, hitting at least two other vehicles. borisjohnson has revived his contested claim that leaving the eu could save the uk 350 million pounds a week. writing in the daily telegraph, the foreign secretary said a lot of that amount could be spent on the nhs. and hundreds of thousands of ryanair passengers are warned their flights could be cancelled during the next six weeks, in a bid to improve the punctuality. now on bbc news, inside out, the secret plan that some say could have saved northern rock.

ten years ago one of the north‘s greatest success stories hit the wall. tonight in a special programme we ask, why did northern rock crumble? this was a bank which had been frankly run into the ground. the bank of england's top man tells me he was stopped from mounting a secret rescue to save it. my advice was very clear, that we should not reveal publicly the fact that we were going to lend to northern rock. and we meet the people who paid the price of the collapse. i was devastated. i didn't know how we were going to manage, how we were going to turn, and just thinking my vision to give him the best life possible under the circumstances was just suddenly wiped away. i'm chris jackson and this is inside out. ten years ago, this was the scene

outside northern rock branches all over the country. customers were desperate to get their money out. it was a classic run on the bank. the queue came right along here from the entrance, around into hood street. in newcastle, veronica craig was trying to persuade people she had known for years not to abandon the rock. i was walking up and down this queue talking to customers i knew personally and saying, "what on earth are you doing?" they were saying, "it's all the money we've got." some had arrived at dawn, a few with hundreds of thousands of pounds each in northern rock accounts. i think they're going to run out of money altogether.

it isjust a colossal shock. i don't think i'll ever trust the banking system in this country again. they'd be crying, i'd be crying, some people would say, "i just got off the bus and saw the queue, i thought "i'd betterjoin the queue." it was really, really upsetting. this was the trigger. one of britain's biggest mortgage lenders needs emergency support from the bank of england. northern rock has problems raising money because of the crisis in the financial markets. it was the first run on a british bank since 1866. customers are being told not to worry. the bbc‘s robert peston broke the news. there is no suggestion that this business is fundamentally bust, but merely running out of money in this way for a bank is extraordinarily serious. the way that i got the story was really old—fashioned journalistic detective work and i was confident i had all the pieces of the puzzle and i would be able to report

that they were going to the bank of england cap in hand to be propped up. the rock had been flying high. it was lending around a fifth of all the mortgages in the uk. but it was running out of money. the reason was the rock's business model. instead of borrowing from its customers to finance its mortgages, it was getting 75% of its money from other banks, but in august 2007, those at the banks turned off the taps and hung on to their money. the cause lay on the other side of the atlantic. the us banks were panicking. for years they had loaned billions in mortgages and house prices were going down. there was a ripple that turned into a tidal wave. there's a saying that when the tide goes out, you soon find out who isn't wearing trunks. in 2007, us house prices crashed, exposing millions who couldn't afford to pay their mortgages.

the banks had huge bad debts so they stopped lending to each other. 4,000 miles away, northern rock and its staff soon paid the price. so why northern rock before any other bank in britain? we approached a number of very senior insiders to get their version of events. only one, who wishes to remain anonymous, would talk. the insider claims the problems in america happened just as northern rock was trying to get one of its regular loans from other banks. if it had been a month later, northern rock would have been able to borrow the money it needed. it would have been in one of the strongest financial positions at that time. whether or not it was that simple, it led to the collapse of northern rock. and a lot of pain. stephen gill, once he worked for northern rock, until the run.

i had never even heard the term "run on the bank" before that day. i didn't know what to make of it, didn't understand it. there was a lot of nervousness about. we were trying to do our work but at the same time we are looking at the bbc news website to see what is happening to the share price. soon the heat was on. the rock began a three—year programme of job cuts. the workforce fell from more than 6,000 to 2,000. staff at newcastle—based northern rock today learned the bank wants to cut a further 680 jobs. unions described the news as appalling. when you start seeing people who have been there a long time and you know they are good at theirjob suddenly get made redundant, you start feeling then nobody is safe. i was scared for myjob, yes. stephen took redundancy. there was so much uncertainty. i didn't know if there

was an end coming or not. just by chance this place came along and it's only around the corner from where i live as well, so ijust had to take the plunge and see if i could do this. so if the bank had survived, would you still be there? oh, yeah, definitely. i was there 12 years and i enjoyed every single one of them. so, could the crisis have been avoided? we've been told yes, if another bank took over northern rock. in fact, the rock had been trying to arrange a takeover by lloyds since august. but our insider says the rescue deal was scuppered by the bank of england. we came close. lloyds were keen but they wanted a bank of england guarantee for the money. there would have been no run. the bank of england refused. but two of the men deciding

the bank's future deny it was ever a serious offer. i would have welcomed any approach that was going to work. the problem was lloyds showed an interest for a couple of days but nothing — they never made any offer or anything like that. lloyds never came to me and said, would you lend to enable us to buy northern rock? i think they did it because they knew that it was pretty silly for them to ask for money that was special subsidy to them. so a fire sale of northern rock to lloyds was never going to happen? it was never going to happen. it's a red herring. so, the lloyds takeoverfailed, but it's claimed the bank of england could have saved northern rock by giving the rock cash. but behind closed doors. in other words, a secret deal. the bank of england lends the money. it doesn't tell anyone. the rock gets through its cash

shortage and back on its feet. the markets know nothing. the northern rock insider said they wanted to do just that — a secret deal. lending without letting the markets know would have got us through but we were told it was illegal. this was made available to other banks a few months later to the tune of more than £61 billion. but the bank of england governor flatly disagrees. he says it was northern rock and the regulator, the financial services authority, who wanted to make the loan public. northern rock itself and fsa all felt that it would be a good idea to reveal it. my advice was very clear, that we should not reveal publicly the fact that we were going to lend to northern rock. but the advice of the lawyers and the fsa was that this could not be done, it was against a european directive. actually, none of my colleagues in europe believed that for a minute.

we asked the former fsa head, sir hector sants, to respond. he said it would be inappropriate for him to comment. is there another explanation why northern rock wasn't saved? the senior insider says the rock was punished for being northern. we were seen as a bunch of northern spivs who deserved what they were getting. no, i don't think that's true at all. after all, other banks also failed in the same way. northern rock was perhaps unfortunate in being at the front of the queue, but it wasn't different in nature from the other banks and the other banks also failed. so, no lloyds takeover. no secret loan. the bank of england was preparing to announce it was providing emergency cash.

it looked like they could avoid much of the storm, until robert peston stepped in. he became saint and sinner. one of britain's biggest mortgage lenders, northern rock, is applying to the bank of england for emergency financial support. fear has been stalking the markets for weeks now. the mere fact that the bank of england has stepped in will actually worry people tomorrow. i suspect we will see shares coming off a bit. i was accused of destroying northern rock, of trying to bring down the entire british banking system, the british economy. it's all bollocks. i was simply reporting on the reckless behaviour of banks, including northern rock. the media put the knives in and destroyed the reputation. if somebody is in trouble and they fall down, the good samaritan story, you can help them up or you can kick them in the balls

and steal their watch. that is what happened to us. somebody stole our watch. i would struggle not to punch robert peston in the face if i saw him. peston reported in a way that suggested the bank was bust. having spoken to senior officials, i can tell you that they are saying there is no reason for depositors to panic. in a way, telling people not to panic when their life savings are going is potentially the reason they do panic. i don't think that's right. i did say, for example, that i thought it very unlikely that depositors would lose any money. were you really a journalist with an ego who saw personal opportunity? indeed, looking back at the events that it triggered off, would you do exactly the same again? under the rules, the moment that

northern rock request emergency help from the bank of england in that way, it has failed. that is an event. if i had not reported that event, i would have been guilty of playing god in an incredibly patronising way. i would have been effectively saying that adults were not capable of understanding the significant information and that would have been an appalling thing for any journalist to do, to withhold serious information of that sort from the public. he did it in a very responsible way and i don't think in any way you can blame robert peston for the consequences that there was. the rock's small number of branches and its online payment system, which crashed, stoked the panic.

i couldn't get on the internet from wednesday onwards, couldn't get our money, couldn't get into branches. that started us getting worried. but a major cause of its problems may lie a decade earlier when it changed from a building society to a bank. that freed it to take more risks, pursue profit and it's claimed, under its swashbuckling boss, it did both. adam applegarth was a very interesting character. he was fun, jack the lad, he gave it plenty all over the place. he was larger than life. applegarth was a sunderland lad with a passion for fast cars. and a salary of more than £1.25 million. he'd never worked anywhere else. the analysts lapped it up for a while, they couldn't

get enough of him. and he thought he walked on water. but he hadn't done his homework properly. it's not in our interests or our borrowers' for them to overextend themselves. the lessons of the early '905 are burned onto all our hearts. not burned enough for city insiders. it's a people's business. in a people's business, you have to make sure that they respect you, that they like the way you've grown your business, that you've grown it correctly, that you haven't been ridiculously aggressive, and that you haven't overstepped the mark. he didn't tick any of those boxes. they knew there was trouble at t‘mill, as they say, and they knew this couldn't go on at this level without there being a heavy fall at the end of it. the city saw two problems. the rock was getting around 75% of its money from other banks, and it appeared to be taking risks to get business. it's claimed basic checks like proof

of identity were being ignored. we were told by senior managers just to override them. just get the applications through, because the half—year results were coming up or the yearly results were coming up. it seems you are giving mortgages with no real checks. yeah. pretty much, yeah, but it wasjust to show that the company was continuing the growth that applegarth wanted. juicy offers likely to get a mortgage were used to tempt customers. the northern rock is advancing 125% of the value of a home to first—time buyers, an offer the building society denies is reckless. together was a 95% mortgage. but it also came with an unsecured loan of up to £30,000. and that, it is claimed, attracted crooks like bees to honey. from day one, it was targeted for fraud. someone was arrested

and the police rang and said, "do you know this chap has nine northern rock together mortgages with you?" directors were caught hiding thousands of bad debts. one of its former bosses emerges from his home this afternoon, admitting he failed to expose the extent of the bank's problem loans. i accept full responsibility for my own actions. the rock still had a majority of good mortgages, but arrears rose sharply. tens of thousands were behind in payments. the bank of england became alarmed. once we started to lend to northern rock, then of course, they gave us some of their mortgages as security on those loans, and our staff had to examine those mortgages. and as time went by, concerns were raised about whether these mortgages were quite as good as they were being cracked up to be. the treasury select committee delivered its verdict. first up, chairman matt ridley. you've had to borrow billions of public money from the bank of england,

you've damaged the good name of british banking. why are you still clinging to office? i would like to say that what has happened has been extremely distressing to us, as it has been to other stakeholders, shareholders, employees and creditors. then it was adam applegarth‘s turn. but this is a humiliation. have none of the board any sense of honour? has nobody offered to resign? i feel great regret for the anxiety our retail customers have seen. within weeks, both had resigned. we asked both matt ridley and adam applegarth to be interviewed in this programme but both declined. was your eye off the ball with this one? when i became chancellor in the summer of 2007, and when you become a new minister you will sit down with your officials, who will say, "these are the things you need

to worry about." but financial stability was simply not mentioned. five months after the crisis started, ministers now decide that public ownership is the best option. after the rock was nationalised, it was revealed shareholders would get nothing. many were rock employees who had held onto their share bonuses when the run began. they thought it still had a future. but in my mind, i was thinking, you know, this will blow over, the share price will come back up, northern rock will survive. we will get through this. my shares were just in excess of £60,000. stephen lost the lot. i think i've got "mug" written on my forehead now. i liked northern rock because it was a north—east company. and i thought they were developing very well. brian has been campaigning for years

to recover the savings he ploughed into rock shares. how much money did you put in? altogether, by the time it finished, i put in over £400,000. but never in your worst nightmare would you have thought that the government could make new laws to be able to take the company away from the owners. it was actually life—changing. it was everything to us. marilyn sterry was about to cash in her partner paul's shares. they were worth £12,000. the money was to buy a mobility car. i was devastated. didn't know how we were going to manage, how we were going to turn. and just thinking, my vision to give him the best life possible under the circumstances was just suddenly wiped away. just very upset, very angry.

it is very sad, it's tragic, considering the importance to the north—east of england, as well as shareholders, but from the government's point of view, it had to be fair to all shareholders. and if we got ourselves into a position where we were paying out to people who had bought shares on the off chance they could pick up a bob or two, we would have been condemned. but while most shareholders lost, those who sold before the run gained, including some northern rock executives. when they were then encouraging staff to still buy into the share save schemes with their own earned money, theyjust decided to offload i think about £5 million worth of shares. it was actually quite a slap in the face to the staff. adam applegarth alone was reported to have sold more than £2.6 million

worth at peak prices in the two years before the run. after nationalisation, the rock was split into a supposed good bank and bad bank. the bad bank, northern rock asset management, took over most of the mortgages. it's claimed a tough business regime was introduced. after the crash it wasjust — we want as much cash as we can get. get rid of customers who were mortgaging, if we could, by clamping down on arrears, and kind of pursuing people a lot more actively for arrears. it became a lot more aggressive, so to speak, in that, "well, you're in arrears. we want the money." uk asset resolution, which oversaw the rock's mortgages, told us its role was to maximise value for taxpayers and treat customers fairly. it was not true to imply it was clamping down on customers.

so how much has the rock lost the government? well, the answer appears to be a big fat zero. in fact, it looks like it'll make a hefty profit. anywhere between £8 billion and £11 billion, depending on which official estimate you choose. that's because the new management focused on getting the money in. new lending stopped. despite rising arrears, most mortgages continued to be paid. a good company that could have been saved, should have been saved. but this government chose to take the property away from us. now the rock's mortgages are expected to make a profit, should it have been nationalised without compensation? should its shareholders, charities and workers have lost out? the shareholders say no, despite government opposition and losing a european court appeal. the government is going

to make a huge fortune. even if they paid all the shareholders their money back, at the share price that it was before the government took it over, i think they would still have billions left over. the company was solvent. they made the law so they could embezzle us of our value. when we nationalised it, what we did was we said we would refer to an independent arbitrator the valuation of those shares. and of course, because of the state of the bank, they were worthless. by february 2007, nobody would touch it. this was a bank which had been frankly run into the ground. but mervyn king says he backed paying the shareholders, if the rock eventually made a profit. see, my plan was that the government would intervene and acquire the shares legally by saying to the shareholders, "although we're taking the shares from you, we will ensure that you do have the claim on the residual

value", and i think that would have been a fair deal. now, the lawyers in the treasury said that was not feasible. we asked the treasury if it would pay compensation. in a statement, it said it was continuing to recover the costs of the bailout. ten years on, newcastle city council now own the former northern rock tower. veronica has lost shares worth £12,000. she's now retired. adam applegarth was reported to have become an adviser to a us company investing in mortgages last year. mervyn king retired as governor of the bank of england and was made a life peer in 2013. robert peston is now itn's political editor. alistair darling was made a life peer in 2015. and those who had faith in the rock are still hurting. after the crash, they would never say they worked at northern rock

because you were actually a bit ashamed to say you worked at northern rock. i try not to be bitter but i think i do feel bitter. i was angry. angry but... ..even more so helpless. it's very sad what happened to the rock. like a family business, well looked after, and then it went to the dogs. and that's it for tonight. now, if you're a customer or worked for northern rock, please do get in touch. and adam applegarth, if you're watching and you would like to break your ten—year silence, we'd love to hear from you. good evening.

saturday was a fairly mixed sort of day. we had some long spells of sunshine but pretty heavy showers and that combination of sunshine and showers meant there was plenty of rainbows around. this was earlier on in royal leamington spa in warwickshire. we've got those clear spells and still a few heavy showers, certainly over the next few hours. but our weather is really dominated by the fact low pressure is sitting out to the east at the moment. high pressure in the south—west. that leaves us with this northerly flow of air. so fairly cool conditions developing tonight. not particularly windy. and as the showers fade we will see them continuing in the south and south—west. clear spells across many parts of the country but light winds winds and clear skies, that means quite chilly conditions. during the early hours of sunday in our towns and cities, temperatures still around eight to 11 degrees.

but it will be colder than that in the countryside, a touch of frost across parts of scotland, northern england and northern ireland. after that, a fresh start to tomorrow with a bit of mist around and it will be an improved day. fewer showers than we saw on saturday and more in the way of sunshine. so you could wake up to quite a chill in the air bursting with mist patches. still showers during sunday morning, particularly around the south coast, the channel islands, the south east. they should ease away but then more widely across england and wales, seeing the odd rogue shower popping up through the afternoon. but many avoiding them, particularly in scotland and northern ireland, mostly dry here. we could see temperatures up to 18, possibly 19 degrees in sheltered spots. not a bad day. many of those isolated showers tend to fade away into the evening hours so we end sunday on mostly dry note. but we've still got the low pressure sitting out towards the east and higher pressure further west, so northerly flow to the air as we move through into monday. and that means particularly round the east coast where we draw in the breeze, there will be one or two showers.

but most places having a largely dry day and monday with some long spells of sunshine. and in the relatively light winds along the east coast, it should feel relatively generally around 15 to 17 degrees. a touch cooler for the likes of newcastle, up towards aberdeen as well. tuesday, mostly dry, bit of a breeze in the east. just one or two showers but most of staying dry with those temperatures up to around 1518 degrees. that's how it's looking. bye for now. this is bbc world news today.

i'm alpa patel. our top stories. police raid a house west of london in connection with the underground train attack. it follows the arrest of a man in the port of dover who police suspect may have planted the bomb. at this stage we are keeping an open mind over whether more than one person was responsible for the attack and we are still pursuing several lines of inquiry and a great pace. bangladesh imposes sweeping new restrictions on 400,000 rohingya muslim refugees, stopping them from travelling once they enter the country. also in the programme. a passenger backlash after europe's biggest airline ryanair cancels up to 50 flights a day for the next six weeks. hello and welcome to world news today.