Tuesday, December 11, 2007

Confusion Over Rock

There seems to be some confusion over what the Bank of England actually wants to happen to the decaying corpse of Northern Rock.

Channel 4 news reported that "senior sources" in the Bank of England believed that nationalisation was the best option for Northern Rock. However, the Bank of England then denied the report (almost) by saying:

"It is not a preference.

Of course, it is a workstream that is progressing

Whatever that means!

The Treasury, quite rightly, do not want to take this into public ownership; only the rather isolated and out of touch Liberal Democrats are openly calling for nationalisation (albeit it "temporary").

In the meantime, Northern Rock Chairman Bryan Sanderson said that a decision on the fate of the bank was unlikely before Christmas.

However, it should be noted that the Treasury has drawn up a draft nationalisation Bill in case all other options to sell the bank fail.

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