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/7184813.stm
The article has changed 8 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Treasury lines up new Rock boss | Treasury lines up new Rock boss |
(20 minutes later) | |
The Treasury has recruited the former boss of Lloyd's insurance market, Ron Sandler, to lead Northern Rock, should the troubled bank be nationalised. | The Treasury has recruited the former boss of Lloyd's insurance market, Ron Sandler, to lead Northern Rock, should the troubled bank be nationalised. |
A decision could be taken within days, says BBC business editor Robert Peston. | A decision could be taken within days, says BBC business editor Robert Peston. |
According to bankers close to the Rock, the Treasury has a fully developed plan to own and manage the bank, should a commercial solution be impossible. | According to bankers close to the Rock, the Treasury has a fully developed plan to own and manage the bank, should a commercial solution be impossible. |
Mr Sandler is widely regarded as having restored confidence in Lloyd's after its years in financial disarray. | Mr Sandler is widely regarded as having restored confidence in Lloyd's after its years in financial disarray. |
The BBC has learned that Mr Sandler would become executive chairman of Northern Rock in the event that the troubled bank is fully nationalised. | The BBC has learned that Mr Sandler would become executive chairman of Northern Rock in the event that the troubled bank is fully nationalised. |
The former boss of Lloyd's of London is well known to Prime Minister Gordon Brown, and worked for the Treasury in developing the so-called stakeholder pension and investment products that were intended to help those on lower incomes save for retirement. | The former boss of Lloyd's of London is well known to Prime Minister Gordon Brown, and worked for the Treasury in developing the so-called stakeholder pension and investment products that were intended to help those on lower incomes save for retirement. |
Shareholder meeting | Shareholder meeting |
The coming week will be a crucial one for Northern Rock. | The coming week will be a crucial one for Northern Rock. |
On Tuesday, shareholders will attempt to restrict the ability of the company's board to sell assets without seeking their permission. | On Tuesday, shareholders will attempt to restrict the ability of the company's board to sell assets without seeking their permission. |
Mr Sandler will chair Northern Rock if it is nationalised | |
Their action in calling an extraordinary general meeting to vote for shackling management is regarded by the Treasury as potentially hostile to the interests of taxpayers. | Their action in calling an extraordinary general meeting to vote for shackling management is regarded by the Treasury as potentially hostile to the interests of taxpayers. |
Taxpayers are exposed to the Rock to the tune of £55bn through direct loans made by the Bank of England and guarantees to other lenders made by the Treasury. | Taxpayers are exposed to the Rock to the tune of £55bn through direct loans made by the Bank of England and guarantees to other lenders made by the Treasury. |
A decision will also be taken imminently by the Treasury on whether to pursue a proposal by the investment bank Goldman Sachs to convert up to £15bn of the taxpayer loan into bonds, for sale to international investors. | A decision will also be taken imminently by the Treasury on whether to pursue a proposal by the investment bank Goldman Sachs to convert up to £15bn of the taxpayer loan into bonds, for sale to international investors. |
If that proposal to raise new finance for the Rock flops, it is likely to undermine attempts to organise a commercial rescue of the Rock by either a consortium led by Virgin or by the Olivant Group. | If that proposal to raise new finance for the Rock flops, it is likely to undermine attempts to organise a commercial rescue of the Rock by either a consortium led by Virgin or by the Olivant Group. |
Chancellor Alistair Darling says his priority is to secure repayment of taxpayers' money. | Chancellor Alistair Darling says his priority is to secure repayment of taxpayers' money. |
On Thursday at the Treasury Select Committee, the chancellor made it clear that nationalisation remains a very live option. | On Thursday at the Treasury Select Committee, the chancellor made it clear that nationalisation remains a very live option. |