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December 2, 2008 10:45:56 AM CST

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How Bad Is Northern Rock?

Posted Feb 19, 08 1:08 PM CST in Business,  World 

(Newser) – 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.

  • Polly Toynbee, in the liberal Guardian, says, "Labour only did what any responsible government would do—but then, politics isn't fair."
  • In the right-leaning Telegraph, Rachel Sylvester writes that Brown looks "like the foolish man who built his house on sand." He should watch out if he tries to scapegoat chancellor of the exchequer Alistair Darling.
  • In the Independent, Steve Richards applauds government ownership—"it could hardly be managed more poorly." The real fallout will not be about nationalization but about oversight: how could this happen in the first place?

Sources Financial Times (UK), Guardian (UK), Daily Telegraph (UK), Independent (UK)

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A Northern Rock clock outside of a branch of the bank in Newcastle, England, Monday, Feb 18, 2008. British Prime Minister Gordon Brown has said that stricken mortgage lender Northern Rock will remain...   (Associated Press)
British Prime Minister Gordon Brown, left, gestures as Chancellor of the Exchequer Alistair Darling listens, during the Prime Minister's monthly news conference at 10 Downing Street in London, Monday...   (Associated Press)
British Prime Minister Gordon Brown gestures during the Prime Minister's monthly news conference at 10 Downing St. in London on Monday, Feb. 18, 2008. Brown said that stricken mortgage lender Northern...   (Associated Press)
British Prime Minister Gordon Brown, left, watches as Chancellor of the Exchequer Alistair Darling speaks to the media during the Prime Minister's monthly news conference at 10 Downing Street in London,...   (Associated Press)
The facade of a branch of Northern Rock is seen in London, Monday, Feb. 18, 2008. The British government was to introduce emergency legislation Monday to temporarily nationalize Northern Rock PLC amid...   (Associated Press)
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Financial Crisis • subprime mortgages • United Kingdom • Gordon Brown • Alistair Darling • Northern Rock • nationalization • market turmoil


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