Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

FIFA President Sepp Blatter steps down amid South Africa World Cup 2010 bribery claims

Read more

MEDIAWATCH

Reactions to Sepp Blatter's resignation

Read more

DEBATE

Defeating ISIS: Back to the drawing board?

Read more

FOCUS

The monk who saved ancient manuscripts from IS jihadists

Read more

ENCORE!

Amer Shomali: Harnessing black humour to tell Palestinian stories

Read more

REPORTERS

Video - Abu Azrael: ‘Iraq’s Rambo’

Read more

THE INTERVIEW

Australian FM Bishop: In the fight against IS group, 'we are dealing with non-state actors'

Read more

BUSINESS DAILY

Are state-subsidised jobs the solution to France's rising unemployment?

Read more

EYE ON AFRICA

Nigeria currency scam: Anti-corruption agency arrests 20 bankers

Read more

Northern Rock to be nationalised

Latest update : 2008-02-18

Troubled British bank Northern Rock is to be brought under temporary state ownership, Chancellor Alistair Darling announced in a surprise press conference on Sunday, thereby rejecting bids by Virgin Group and the bank's own management.

British finance minister Alistair Darling announced on Sunday the temporary nationalisation of troubled bank Northern Rock, which was hit by the global credit crunch in August.
  
"The government has decided to bring forward legislation to bring Northern Rock into a temporary period of public ownership," he said during a surprise press conference at the Treasury in London.
  
The move means that officials have rejected two bids made by entrepreneur Richard Branson's Virgin Group and the bank's own management team.
  
Darling said that this was because "in the current market conditions, we do not believe that the two proposals deliver sufficient value for money for the taxpayer".
  
Northern Rock, based in the northeastern city of Newcastle, was plunged into a severe crisis in August last year when the global credit squeeze forced it to request emergency help from the Bank of England (BoE).
  
The turbulence at Northern Rock prompted customers to queue in their thousands to withdraw savings from branches across the country, in turn affecting consumer confidence in the banking sector as a whole.
  
The BoE has lent the troubled bank about 25 billion pounds (33.4 billion euros, 49.4 billion dollars) in emergency funding since September to keep it afloat.
  
Darling said the move was made after "full consultation" with the BoE and watchdog body the Financial Services Authority.
  
"Northern Rock will continue operating as a bank on a commercial basis. It will be open for business as usual tomorrow morning and thereafter," he said.
  
"Importantly, savers and depositors' money remains safe and secure."
  

Date created : 2008-02-17

COMMENT(S)