Lib Dems want audit of Rock's loan book

The Lib Dems have called for an independent audit into the quality of
Northern Rock’s assets and loan books.

Treasury spokesman for the party, Vincent Cable, who had called for temporary
nationalisation of the bank, said the audit should be supervised by the Bank of
England.

Cable said job losses were inevitable but further pledged his party’s support
for the legislation – to be rushed through parliament – that will nationalise
the bank.

In the meantime, government and the regulators are refusing to divulge
details of the role investment bank Goldman Sachs played in nationalising the
bank, although the taxpayer’s money is being used to support the Newcastle-based
bank.

Taxpayers will also be paying for the advisory services of Goldman Sachs,
hired to assist the Treasury, Bank of England and the Financial Services
Authority on the future of the bank.

While the bill will formally be paid by Northern Rock, it will technically
come out of the government’s budget under plans of nationalisation.

Further reading:

Godbehere set for Rock FD throne

Did
Gordon Brown have a choice over Northern Rock?

Regulators
coy about Goldman Sachs role in saving lender