Northern Rock sale faces Treasury veto


20 Nov 2007

  • Comments

Chancellor Alistair Darling told the House of Commons yesterday the Government, as a major creditor and investor in Northern Rock’s future, would have to approve or veto any sale of the beleaguered bank.

His ministerial statement in Parliament came as the bank’s share value dropped 21.4% to a new low of 104.2p after Northern Rock revealed all offers, reportedly counting 10 since Friday’s deadline for expressions of interest, had so far been ‘materially below’ the bank’s closing market value.

Facing the prospect of placing Northern Rock in administration, nationalising the bank or running foul of EU state-aid rules, Darling unveiled a three-point approach:

‘First, to protect the interests of the taxpayer,’ he said. ‘Substantial sums have been lent and this money has to be repaid at an appropriate time and rate. The Government will consider proposals with a view to reaching the best outcome for the public purse.

‘Second, to protect depositors. It is essential to do everything we can both to safeguard their interest and to maintain the service provided to them. And third, to maintain wider financial stability.’

Further reading:

Rock FD survives board clear out

Northern Rock denies its funding model was risky

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.