Dark clouds gather over corpse of Northern Rock
November 18th, 2007Believe it or not Northern Rock is still up for sale. It’s hard to imagine it has any value in it though like Barings there is a chance of life after death. The real concern though is the financial responsibility assumed by the taxpayer. As previously reported the taxpayer has underwritten Northern Rock and by inference the entire banking system.
This week concerns have arisen that the taxpayer could actually be seriously under water from this guarantee. Cracks are appearing in the government establishment with the Bank of England under fire from the Treasury and the knives are being sharpened as the blame game starts.
The UK financial system is clearly still in trouble.
Tags: bank of england, credit crunch, financial crisis, northern rock
February 19th, 2008 at 4:19 am
[...] astonishing but not entirely unexpected. The British taxpayer is the proud owner of the Northern Rock and 100bln worth of loans. It’s [...]