UK bank Northern Rock to be nationalised

From Wikinews, the free news source you can write!

Sunday, February 17, 2008

Queues formed outside Northern Rock branches in September 2007 as savers rushed to withdraw their money.
Image: Dominic Alves.

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".

Related news

• "Queues form outside struggling UK bank; calm urged". Wikinews, September 15, 2007
• "UK bank gets emergency support". Wikinews, September 14, 2007

Sources

• "Northern Rock to be nationalised". BBC News, February 17, 2008
• "Northern Rock to be nationalised". Financial Times, February 17, 2008
• Alistair Darling "Statement by the Chancellor of the Exchequer, Rt Hon Alistair Darling on Northern Rock". HM Treasury, February 17, 2008
  

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