Sunday 16 December 2007

I wonder if Northern Rock will be nationalised?

I wonder if Northern Rock will be nationalised. In the press the move would be seen as a temporary one to help the sale of the Newcastle-based bank. It would certainly
facilitate the sale of the £100bn plus mortgage book but it would not look good
if the nationalisation was a long-term move. I don't see Alistair Darling as a de facto chairman of an UK mortgage bank.
The British chancellor has better things to do such as fiddling around with capital gains tax (CGT), which still has not been sorted out yet.

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