delusionofgrandeur

The BBC has reported this evening that the government’s preferred method of nationalisation for troubled bank Northern Rock, should that course of action be taken, would be by an act of parliament rather than a traditional buy out.

Sources within the government have been reported to have said that nationalisation is now highly probable and a decision could be made within days.

Earlier, a meeting of shareholders voted in favour of the Rock’s board retaining control for any private rescue package although the chances of any such rescue package are now apparently remote. The shareholders are trying to recover some of their investments but the government has indicated that they will only have obligation to depositors and the taxpayer.

The government hopes to salvage some of the £55 billion pounds by which the British taxpayer is now exposed to Northern Rock.

Photo Credit: Alex Gunningham cc-by-2.0

This entry was posted on Tuesday, January 15th, 2008 at 10:54 pm and is filed under Economy, News, Politics.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.