Northern Rock to be nationalised by UK government

[Pavlos]

Source

Northern Rock is to be nationalised as a temporary measure, Chancellor Alistair Darling has said.

 

A consortium led by the Virgin group was leading bids to run the beleaguered bank, while a management buyout had also been considered.

 

But ministers have decided that nationalisation - the first such move since the 1970s - was the only option.

 

Neither of the two private proposals delivered "sufficient value for money to the taxpayer", Mr Darling said.

 

"This is a temporary measure. The long-term ownership of this bank must lie in the private sector".

 

So it's finally official, mind it was nationalised in all but name beforehand - what with the profits lying in the private sector and the risks being covered by the tax payer.

 

While it will ensure that all the money and mortgages everyone has in that bank will be kept secure, it doesn't send a good message out about the state of the UK's economy; if your business isn't doin' so well we'll take it from you!

 

British Rock, anyone?

[Jae Onasi]

The US is having a mortgage crisis right now, too, and the gov't has taken steps to minimize the damage caused by all the foreclosures. Obviously the gov't isn't taking over the US banks so it's not quite the same situation as in the UK, but they still exert influence anyway.

[mur'phon]

I don't like it, but it seems to be the lesser evil.