18-02-2008
Northern Rock nationalisation announced by government
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
It was decided yesterday (February 17th) that the British financial institution Northern Rock is to be nationalised by the UK government.
Sparking anger within the bank's base of shareholders, yesterday's decision follows the attempted sale of the bank and has resulted in the suspension of the organisation's shares.
Established in 1965, Northern Rock is the first bank to face nationalisation for over 30 years.
"[It was] a very sad day for the stock market, banking industry and the reputation of the UK as a financial centre," said Jon Wood, head of SRM, a Monaco-based hedge fund.
Chancellor Alistair Darling added to the BBC: "[Despite this move,] if people have proposals, of course we will listen to them."
Despite a market value of over £5 billion 12 months earlier, at the close of trading on Friday (February 15th), Northern Rock was worth approximately £380 million.
Later today (February 18th), prime minister Gordon Brown will hold a meeting about the bank.