[Cid_Yama]

The Treasury today announced that the beleaguered bank Northern Rock will be nationalised.

In a statement, the chancellor, Alistair Darling, said that "under the current market conditions" neither of the two last-minute bids - submitted by Richard Branson's Virgin consortium and the Northern Rock management team - delivered "sufficient value for money to the taxpayer".

It marks the failure of the government to reach a deal with the private sector over the future of the bank. Emergency legislation will now be rushed through parliament.

<i>Mr Darling said the move met "our objective of protecting taxpayers' interests".
He said he had been told by the Financial Services Authority that the bank was solvent and that its mortgage book remained of good quality.</i>
http://www.guardian.co.uk/business/2008 ... nalisation
Yeah, right! Looks like the Brits take it up the Angus on this one.

[DantesPeak]

Effectively, it was nationalised before this - with a $49 billion US dollar loan from the UK government. In addition, I wonder if any private bid could be accepted by those seeing the inside figures and knowing the state of the mortgage markets in the UK and in the US.

Present shareholders may end up with little or nothing for their shares. This just comfirms what we have been discussing here for many months - the housing and credit markets are in a state of collapse. I still wouldn't be buying any stock related to the home mortgage or finance industries.

$this->bbcode_second_pass_quote('', 'T')he government's move immediately drew harsh criticism from Northern Rock's shareholders, who had been supporting the bid from the bank's board in the hopes that it would put a better value on their shares. Mr. Darling said the bank's shares will be valued by an independent arbiter, on the basis that the company doesn't have government support. That could leave shareholders with next to nothing.

[eXpat]

Investor fury as Northern Rock shares suspended link

$this->bbcode_second_pass_quote('', 'S')hares in stricken mortgage lender Northern Rock were suspended from stock market dealings this morning following the government's controversial decision on Sunday to nationalise the bank.

Its shares closed on Friday at 90p, valuing the Newcastle-based company at around £380m. A year ago it was worth more than £5bn.

The government's move - the first nationalisation of a British company since the 1970s - has been greeted with fury by Northern Rock shareholders.

Although chancellor Alistair Darling said yesterday the government would appoint an independent valuer to decide the level of compensation, shareholders are expected to receive little, if anything, for their shares.