by Mike Masnick
Mon, Sep 17th 2007 3:04pm
In the bad old days (or in countries with questionable financial situations) when there were concerns a bank might run out of money, there would be an old-fashioned "bank run," with tons of customers all trying to withdraw their money at once. That could cause all sorts of problems, since most banks work on the theory that such runs won't happen. Thanks to the FDIC, you don't see bank runs in the US these days, but apparently that's not the case in the UK, where concerns over the financial status of the bank Northern Rock led to what certainly looks like an old-fashioned bank run. However, in this modern age, not everyone is lining up on the street to get into their nearest Northern Rock branch. Apparently, the bank's website has experienced the equivalent of a bank run on its servers -- meaning that they've been pretty much unable to handle the traffic, frustrating a number of online account holders who say the terms of service say the only way they can retrieve money is via the online interface. Of course, the fact that many of those account holders can't even reach the site is leading to increased panic among those who fear that the site is down permanently. Apparently, even if the interface is different, an online bank run pretty much mimics the offline one.
If you liked this post, you may also be interested in...
- Comcast's New Voice-Controlled Remote Starts Marketing Movies To Your Kids
- It's 2015 And Congress Is Now, Finally, Allowed To Use Open Source Technologies
- Yet Another Run On A Virtual Bank
- Scammers Siphon Money From President Sarkozy's Online Bank Account; Gov't Blames Itself
- Early Internet Bank Shut Down By The Feds Over Mortgage Defaults