Public carries Rock.(reports of Northern Rock PLC)(Brief article)

Financial Adviser, November, 2007

According to an analysis by BBC business editor Robert Peston, the taxpayer is subsidising the troubled Northern Rock to the tune of AGBP1000 a person or AGBP30bn. This is a scandal.

And, what is more, according to chancellor Alistair Darling, it will take until Q1 for the mess to be cleaned up.

Since the mortgage bank's deposits have already been 'nationalised' there is very little to discuss in terms of dissolving the business.

The Bank of England, as the lender of last resort which has so far loaned the bank an incredible AGBP23bn, which will almost certainly rise to nearly AGBP50bn by February, should give the bank's board a deadline to turn round the company or call in its loan and sell the remaining mortgage book, intellectual property...

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