NORTHERN ROCK TO BE NATIONALISED
February 17th, 2008Via: Financial Times:
The UK Treasury is to announce on Sunday that it is to nationalise Northern Rock, the troubled British bank, the Financial Times understands.
The decision ends months of efforts to find a private sector rescuer for the stricken mortgage lender, which ran into trouble as a result of the international credit squeeze.
It means that neither of the two bids for the bank, from Sir Richard Branson’s Virgin consortium and Northern Rock’s management team, have been successful.
Both bidders tendered revised offers on Friday after the government threatened that the bank would be nationalised unless their proposals were improved.
It is understood that the government believes nationalisation is now the best option, even though it is likely to spark a political storm, an angry reaction from some shareholders and big job losses in the north-east of England.
http://www.marketoracle.co.uk/Article3706.html
The article about Northern Rock seems to be a baby step on the road to monetization. When I read the link above, I didn’t really think it was a possibility. I stand corrected. I think.
You econ folks, please let me know if the one relates to the other; it seems like it, but maybe I’m missing something.