Following a request to Bank of England for liquidity support, Northern Rock [£24 billion of customer deposits] is experiencing a run on the Bank. A likely next step will be a takeover, particularly as the share value has dropped significantly.
The NR business model has been to grow aggressively, funding the growth with expensive wholesale funding. That funding dried up, following the sub-prime crisis.
Yet another example that suggests its time to get back to basics.
Run on the bank – Times Online
A retired hotelier and his wife barricaded the Cheltenham branch manager in her office after being told that they could not withdraw £1 million savings without notice. The situation was resolved only when police officers arrived to calm the couple down.
Bankwatch 
You are guaranteed 100% of the first £2,000 and 90% of the next £33,000 by the government. Of course if Northern Rock goes bankrupt (a major possibility) you’ll be asking for your money back, along with millions of other savers. You won’t see a penny for months (or possibly over a year) and will lose the interest you’d have gained if you’d transferred your money on Monday. The price you’ll pay is maybe a few tenths of a percent in interest. What price is peace of mind?