Northern Rock State Owned
Published / Last Updated on 19/02/2008
Northern Rock is now state owned. The Government officially took control this week with arguments throughout the land about who pays and why.
The Government maintain this is a temporary measure whilst a buyer is found for Northern Rock.
Taxpayers are worried that they will be left footing the bill for Northern Rock.
Northern Rock shareholders are annoyed that their shares are worthless.
Our view
Blame here lies with the Government via the Treasury and the Financial Services Authority in addition the Northern Rock Board. Lending policy and solvency are key to all financial institutions including Northern Rock.
The dust will not settle over Northern Rock until a buyer is found. It is also interesting that no heads have rolled at the FSA or the Treasury for the debacle that was and has followed Northern Rock.
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