UK bank Northern Rock to be nationalised
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Troubled U.K. bank Northern Rock is to be nationalised, the first such move since the 1970s. The Treasury made the decision after a long period of uncertainty which began in September 2007 when it was revealed that the bank had approached the Bank of England, as lender of last resort due to problems raising funds in the money markets. The move means that bids from Virgin Group and a proposal for a management buyout have been rejected. In a statement by Alistair Darling, Chancellor of the Exchequer, said that "in current market conditions, we d
Troubled U.K. bank Northern Rock is to be nationalised, the first such move since the 1970s. The Treasury made the decision after a long period of uncertainty which began in September 2007 when it was revealed that the bank had approached the Bank of England, as lender of last resort due to problems raising funds in the money markets.
The move means that bids from Virgin Group and a proposal for a management buyout have been rejected. In a statement by Alistair Darling, Chancellor of the Exchequer, said that "in current market conditions, we do not believe that they deliver sufficient value for money for the tax-payer".
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Licensed archive reporting by Wikinews contributors. Text: CC BY 2.5 (https://creativecommons.org/licenses/by/2.5/). Original source date retained. 411 has not independently verified this archive report.
Read the source: Wikinews ↗Source published 17 Feb 2008, 05:30 am IST
