Northern Rock

If the bill is passed this week then the government would take temporary public ownership of the institution.  It would remain in state hands for several years, shrink considerably in size and then be sold off. It is likely to go ahead as the Liberal Democats are supporting the bill, a decision will be made later this week. 

Shares in the company were suspended as of yesterday, they closed on Friday at 0.90p.  The company was valued at £380 million compared to more than 5 billion a year ago.

6000 people currently work for Northern Rock, it is yet to be confirmed how many of those jobs will be saved.  It is expected that at least half will be going initially.

It is rumoured that the nationalisation of Northern Rock will cost tax payers £100 million for advice on the crisis from banks and lawyers.

The high street banks are fearing that this nationalisation will disadvantage them and are seeking reassurance from the government.