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Rock debt payback 'to take years' Rock's rescue plans 'carry risk'
(29 minutes later)
The new boss of Northern Rocks says it will take years for the bank to pay back its loans from the taxpayer. All plans to save Northern Rock carry risks and there is no guarantee they will succeed, the bank's new executive chairman Ron Sandler has said.
Executive chairman Ron Sandler has been charged with finding a viable business plan for the lender and was speaking after meeting managers and staff. However, after meeting staff, he said that there was a good platform from which to stabilise the bank and repay billions of pounds of state loans.
The government decided to nationalise Northern Rock after rejecting two private sector takeover offers.
Mr Sandler said it was too early to say if Northern Rock would cut jobs.
Mr Sandler has been charged with finding a viable business plan for the lender and was speaking after meeting managers and staff.
He said that bank was well placed to recover from the problems that were started by a slump in the US housing market and led to a freezing up of global credit markets.
But, he cautioned that "nothing is guaranteed in this world".
"All possible solutions carry with them an element of risk," he added.
Mr Sandler explained that it would take years for the bank to pay back its loans from the taxpayer.
When asked about the loans he said: "It is clearly unrealistic to talk about months. We are clearly talking about a period of some years."When asked about the loans he said: "It is clearly unrealistic to talk about months. We are clearly talking about a period of some years."
He also said it was too early to say if Northern Rock would cut jobs.
The Prime Minister Gordon Brown has been defending the government's decision to nationalise Northern Rock.The Prime Minister Gordon Brown has been defending the government's decision to nationalise Northern Rock.
At a Downing Street briefing he called it "the right move at the right time for the right reasons".At a Downing Street briefing he called it "the right move at the right time for the right reasons".
The government's move has been fiercely criticised by shareholders who face losing almost all of their investment.The government's move has been fiercely criticised by shareholders who face losing almost all of their investment.
Shadow chancellor George Osborne said the nationalisation plans were "catastrophic," and that they would be opposed by the Conservatives.Shadow chancellor George Osborne said the nationalisation plans were "catastrophic," and that they would be opposed by the Conservatives.