English authorities will sell savings and loan association Northern Rock
6 December 2007The Ministry of Finance of the Great Britain is going to sell bank Northern Rock to the private company.
Within several weeks the Ministry negotiated for sale of Northern Rock, which was the fifth savings and loan association on size before crash in September, but its representative has told, that the government is ready to any turn of events.
The representative of the ministry has informed that while the transaction is not completed, the government continues to consider any opportunities concerning future Northern Rock.
Earlier newspaper Daily Telegraph has informed, that the British government has worked out the law on nationalization of Northern Rock and hopes to get two-party support for it. This measure has been accepted “in case of necessity”, if it will not be possible to sell bank of the private company.
Traders and analysts consider that nationalization can take several years and involve the government in confused judicial conflicts.
From the beginning of financial crisis Northern Rock has borrowed at Bank of England not less than 29 billion pounds sterling ($60 billion).
