This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7151840.stm
The article has changed 5 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Nationalising Rock not ruled out | Nationalising Rock not ruled out |
| (about 1 hour later) | |
| Nationalisation is still an option for troubled lender Northern Rock, and the government is not ruling anything out, Prime Minister Gordon Brown has said. | Nationalisation is still an option for troubled lender Northern Rock, and the government is not ruling anything out, Prime Minister Gordon Brown has said. |
| Mr Brown also rejected suggestions that he ignored warnings that the Rock was in trouble and said everything possible was being done to secure its future. | Mr Brown also rejected suggestions that he ignored warnings that the Rock was in trouble and said everything possible was being done to secure its future. |
| He is facing calls to nationalise the stricken bank, whose aid package from public funds is now estimated at £57bn. | He is facing calls to nationalise the stricken bank, whose aid package from public funds is now estimated at £57bn. |
| But the prime minister said he still hoped for a sale to a private company. | But the prime minister said he still hoped for a sale to a private company. |
| On Tuesday, the Treasury expanded its guarantees on Northern Rock's liabilities, prompting talk that state ownership of the bank was a step closer. | On Tuesday, the Treasury expanded its guarantees on Northern Rock's liabilities, prompting talk that state ownership of the bank was a step closer. |
| "We are doing everything in our power to help Northern Rock find the right buyer for the future," the prime minister said. | "We are doing everything in our power to help Northern Rock find the right buyer for the future," the prime minister said. |
| "We do not rule anything out for the future." | "We do not rule anything out for the future." |
| Mr Brown said Northern Rock's collapse had been caused by an "unsound business plan". | Mr Brown said Northern Rock's collapse had been caused by an "unsound business plan". |
| But he said the fact that its problems had not spread to other institutions showed the "tripartite" regulatory system of the government, Financial Services Authority and the Bank of England, was "working well". | But he said the fact that its problems had not spread to other institutions showed the "tripartite" regulatory system of the government, Financial Services Authority and the Bank of England, was "working well". |
| Mr Brown designed the system and implemented it in 1997. | Mr Brown designed the system and implemented it in 1997. |
| Rift denied | Rift denied |
| The prime minister and Chancellor of the Exchequer Alistair Darling denied any rift with Bank of England Governor Mervyn King, and rejected suggestions that they had ignored warnings that Northern Rock was in trouble. | The prime minister and Chancellor of the Exchequer Alistair Darling denied any rift with Bank of England Governor Mervyn King, and rejected suggestions that they had ignored warnings that Northern Rock was in trouble. |
| "The Governor and I and the chancellor are completely at one in both the way we deal with these events and analyse what's happened," said Mr Brown. | "The Governor and I and the chancellor are completely at one in both the way we deal with these events and analyse what's happened," said Mr Brown. |
| I don't think anyone wants to go back to the old system of seven or eight different regulators Alistair DarlingChancellor of the Exchequer | I don't think anyone wants to go back to the old system of seven or eight different regulators Alistair DarlingChancellor of the Exchequer |
| Mr Brown also denied that he was hesitating over appointing Mr King for a second term as governor, adding that an announcement would be made in due course. | Mr Brown also denied that he was hesitating over appointing Mr King for a second term as governor, adding that an announcement would be made in due course. |
| The chancellor, who attended the press conference with Mr Brown, said that "wide-ranging" reforms would unveiled early next year that would help prevent banks from running into difficulties. | The chancellor, who attended the press conference with Mr Brown, said that "wide-ranging" reforms would unveiled early next year that would help prevent banks from running into difficulties. |
| "I don't think anyone wants to go back to the old system of seven or eight different regulators," he said. | "I don't think anyone wants to go back to the old system of seven or eight different regulators," he said. |
| Mr Darling blamed Northern Rock's problems on its business model. | Mr Darling blamed Northern Rock's problems on its business model. |
| "Northern Rock underwent a rapid expansion of its business that was totally dependent on being able to raise billions of pounds from the money market every day." | "Northern Rock underwent a rapid expansion of its business that was totally dependent on being able to raise billions of pounds from the money market every day." |
| "Of course in the summer that became rapidly more difficult and then impossible for it." | "Of course in the summer that became rapidly more difficult and then impossible for it." |
| Suitors | Suitors |
| The auction process for Northern Rock has been thrown into doubt recently, though two high-profile suitors, Virgin Group and Olivant, remain. | The auction process for Northern Rock has been thrown into doubt recently, though two high-profile suitors, Virgin Group and Olivant, remain. |
| Bradford & Bingley has approached Northern Rock about buying assets from the troubled lender, BBC News has learned. | |
| Although the mortgage lender is not looking to buy Northern Rock outright, it could become part of a private sector rescue of the company. | |
| Bradford & Bingley said that it was not actively pursuing a bid for any part of Northern Rock at this time, although it said it was one of several parties that received a copy of the bank's briefing memorandum. | Bradford & Bingley said that it was not actively pursuing a bid for any part of Northern Rock at this time, although it said it was one of several parties that received a copy of the bank's briefing memorandum. |
| On Tuesday, the Treasury offered to cover any loss by financial institutions that provide money to Northern Rock. It hopes the move will restore confidence in the lender and let it operate normal banking services. | On Tuesday, the Treasury offered to cover any loss by financial institutions that provide money to Northern Rock. It hopes the move will restore confidence in the lender and let it operate normal banking services. |
| The Treasury had already guaranteed savers' deposits held at Northern Rock, after September saw the UK's first run on a bank in living memory. | The Treasury had already guaranteed savers' deposits held at Northern Rock, after September saw the UK's first run on a bank in living memory. |