Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 10:00:06 AM CST

Learn about Newser Points »

« Back to the grid | Next story »

Nationalization May Loom for Northern Rock

Posted Feb 13, 08 12:00 PM CST in Business 

(Newser) – Troubled British mortgage lender Northern Rock’s share price plummeted 8% today as rumors of government nationalization grew after the Treasury panned rescue plans offered by Richard Branson's Virgin Group and a competing version from the bank’s management team, the BBC reports. Though shareholders reportedly prefer management's bid, the government favors Virgin’s plan—if it sweetens the deal.

Among the concessions sought is a bigger taxpayer stake in the Rock in return for guaranteeing funds. Shareholders would lose half their stake in the lender under Virgin’s plan, but could lose everything if the government nationalizes it, which Prime Minister Gordon Brown has said he’s willing to do. "Nationalization is looking much more likely," said one banker.

Sources BBC, Press Association

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Did Air Ace Fossett Fake His Death?

    Jul 28, 08 3:05 AM CDT
    Did Air Ace Fossett Fake His Death? Air adventurer Steve Fossett may have faked his own death, reports the tabloid News of the World. No wreckage was ever found after Fossett disappeared last year in a light plane over the Nevada desert. Fossett didn't bother to wear his GPS watch—and he may have had strong motives to disappear, including getting out from under shaky investments and possible marital troubles.
    More »

  • How Bad Is Northern Rock?

    Feb 19, 08 1:08 PM CST
    The subprime crisis has forced the British government to do what it dreaded: nationalize a bank. What's the fallout from the Northern Rock takeover?

    • Gordon Brown "put quite a good face" on an unpalatable decision, says Philip Stephens of the Financial Times. Nationalization hasn't hurt him much, but the dithering has. Result: An election is probably years away.
    More »

  • Move to Nationalize UK Bank Sparks Fury

    Feb 18, 08 3:48 AM CST
    Move to Nationalize UK Bank Sparks Fury Furious shareholders concerned about the risk to their investments are blasting the British government's decision to nationalize ailing Northern Rock bank. The British Treasury is expected to face lengthy legal action from investors once the government formally announces details of the takeover today. Trading in bank shares is being suspended, and the government takeover could be completed within the week. Taxpayers have already forked over billions of dollars to prop up the troubled financial institution. More »

  • UK Nationalizes Northern Rock

    Feb 17, 08 12:52 PM CST
    UK Nationalizes Northern Rock British ministers plan to nationalize Northern Rock as part of a bold, desperate move to rescue the struggling bank, the BBC reports. Chancellor of the Exchequer Alistair Darling said two private bids to take over Northern Rock failed to offer “sufficient value for money to the taxpayer,” adding that London would only hold onto the bank until market conditions improve. More »

  • Northern Rock Bailout Plan a Money Shuffle

    Jan 21, 08 2:21 PM CST
    Northern Rock Bailout Plan a Money Shuffle The British government today unveiled its last-gasp plan to hand off the Northern Rock hot potato and prevent nationalization, the London Times reports. Under the plan, the bank would immediately pay back the £25 billion it owes the government by selling the debt to private investors as bonds. But since the government is backing the bonds, taxpayers are still on the hook if the Rock defaults. More »

Britain's Chancellor Alistair Darling makes a statement to the House of Commons, in London in this image taken from TV Monday Jan. 21, 2008. Treasury chief Alistair Darling outlined a plan Monday for...   (Associated Press)
People walk pass a branch of Northern Rock bank in London, Monday, Feb. 4, 2008. Entrepreneur Richard Branson's Virgin Group, private equity firm Olivant and an in-house team are all expected to lodge...   (Associated Press)
People walk pass a branch of Northern Rock bank in London, Monday, Feb. 4, 2008. Entrepreneur Richard Branson's Virgin Group, private equity firm Olivant and an in-house team are all expected to lodge...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 1)

Tags

Richard Branson • Northern Rock • nationalization • Virgin Group


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »