Maybe we should rename Northern Rock, National Rock, after the high street bank became nationalised.
A special bill had to be passed in order for the bank to be in the governments control, but last week it finally happened and all shares have now passed to the government.
Despite a couple of rescue bids by the Virgin consortium and Olivant, the government declared that nationalising the bank was in the best interest of the taxpayers.
Northern Rock starts this week running ‘as normal’ and that its customers money remains safe in their hands.
The decision has been very controversial and was opposed by many as there is no guarantee of the move succeeding. There are also worries it could remain private for up to 10 years or so, however the government remain confident that this is only temporary and at some point in the future when the financial markets are stable, it will return to the private financial sector.
This is the first time in over 20 years that a bank has been nationalised. Read more at the BBC News website.
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