The nationalisation of Northern Rock can now be formalised after emergency legislation permitting troubled banks to be taken into public ownership was accepted by MPs and peers yesterday.

Opposition parties abandoned their attempt to make the bank subject to freedom of information laws, ending fears of a prolonged battle, according to The Press Association.

When an extended bout of parliamentary toing and froing appeared inevitable, the upper chamber ended the stand-off and the banking (special provisions) bill was granted Royal Assent.

Ministers must now secure approval for an order specifically transferring the bank to public ownership, using the new powers.

Further reading:

Big Four firms vie for Rock valuation deal

NAO to probe government’s Rock rescue