Freshfields cashes in on Northern Rock crisis

The magic circle giant is the longstanding lead adviser to the Newcastle-based lender and has been appointed to represent it after Northern Rock asked the Bank of England to bail it out with emergency funding last week.

Freshfields' co-head of worldwide financial institutions, William Lawes, and head of structured finance Alan Newton are leading the team for Northern Rock.

Despite assurances from management and, more recently, Chancellor of the Exchequer Alistair Darling that savers' money is secure, the lender has been the subject of a 'run on the bank' by customers attempting to withdraw their savings - more than £2bn had already been taken out as Legal Week went to press.

Northern Rock has seen
its share price plummet in the last week and has reportedly been attempting to broker its own sale.

Freshfields regularly advises the lender on share plan matters and compliance with regulations.

In 2001, it advised Northern Rock on its twin acquisition of Legal & General Bank and Legal & General Mortgage Services.

Other regular advisers to Northern Rock include DLA Piper and US firm Sidley Austin.