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| Version 0 | Version 1 |
|---|---|
| Northern Rock in government hands | Northern Rock in government hands |
| (10 minutes later) | |
| Northern Rock has now been nationalised, the government says. | Northern Rock has now been nationalised, the government says. |
| The Northern Rock Transfer Order 2008 has been passed, transferring all shares in the troubled bank into government hands. | The Northern Rock Transfer Order 2008 has been passed, transferring all shares in the troubled bank into government hands. |
| The order was made after the bill allowing it to pass into government ownership was given Royal Assent. | The order was made after the bill allowing it to pass into government ownership was given Royal Assent. |
| The government ruled out two rescue bids put forward by Virgin and the bank's management, saying it was in the taxpayers' best interests. | The government ruled out two rescue bids put forward by Virgin and the bank's management, saying it was in the taxpayers' best interests. |
| The Banking (Special Provisions) Bill cleared the Commons on Tuesday but ran into opposition in the Lords, where peers were demanding additional safeguards. | |
| Members of the Lords wanted the bank to be subject to the Freedom and Information Act and demanded an independent audit of the bank after three months in public ownership. | |
| The bill became law late on Thursday evening, after peers agreed to drop their demands. | |
| Nationalisation has been controversial. Shadow chancellor George Osbourne said the government had taken the country "back to the 1970s and the failed policies of Labour's past". | |
| Taxpayers' liabilities | |
| The bank will be headed by executive chairman Ron Sandler, former boss of the Lloyd's of London insurance market. He will be paid £90,000 a month. | |
| The transfer of ownership of Northern Rock means taxpayers' liabilities will increase to £110bn, the equivalent of £3,500 per taxpayer. | |
| The government has tried to reassure Northern Rock customers that it will be "open for business as usual" under public ownership. | The government has tried to reassure Northern Rock customers that it will be "open for business as usual" under public ownership. |
| "Depositors' money remains absolutely safe and secure. The government's guarantee arrangements remain in place and will continue to do so," it said. | "Depositors' money remains absolutely safe and secure. The government's guarantee arrangements remain in place and will continue to do so," it said. |
| In September last year, Northern Rock asked the Bank of England for emergency financial assistance, after it fell foul of the crisis in global financial markets. | In September last year, Northern Rock asked the Bank of England for emergency financial assistance, after it fell foul of the crisis in global financial markets. |