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

December 2, 2008 10:49:18 AM CST

Learn about Newser Points »

« Back to the grid | Next story »

Move to Nationalize UK Bank Sparks Fury

Posted Feb 18, 08 3:48 AM CST in World,  Business 

(Newser) – 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.

“The only reason the government has chosen nationalization is because it offers better value to the taxpayers," said the director of the UK Shareholders Association. "This is equivalent to a thief telling you it's a better value to him to steal from you than to enter into a commercial transaction with you.” The government rejected rival offers from private groups because officials believed the deals required too much public subsidy and posed too great a risk for taxpayers.

Source Times (UK)

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon
A sign is seen outside a branch of Northern Rock in London, Monday Jan. 21, 2008. Britain's Treasury chief Alistair Darling outlined a plan to nationalize the bank Sunday (AP Photo/Matt Dunham)   (Associated Press)
Chancellor Alistair Darling answers questions during a press conference at the Treasury in London, Sunday Feb. 17, 2008. Treasury chief Alistair Darling said Sunday that struggling bank Northern Rock...   (Associated Press)
People walk by a branch of Northern Rock bank in London, Monday, Feb. 4, 2008. The British government announced plans to take the bank into public ownership Monday. (AP Photo/Sang Tan)   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Crumbling Rock

Threads (
1
 of 1)

Tags

bailout • investors • shareholders • Richard Branson • Alistair Darling • nationalization • Virgin • Chancellor of the Exchequer • British Bankers Association


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 »