Belated Northern Rock nationalisation the right decision - Cable
The Government has announced that it is to temporarily nationalise the stricken Northern Rock bank. Emergency legislation will be taken through the House of Commons tomorrow. Northern Rock shareholders will be offered compensation for their holding at a level set by a government-appointed panel. UK taxpayers are now subsidising the bank in loans and guarantees to other lenders to the tune of about £55bn. After nationalisation this will jump to £110bn, a cost of £3,500 per taxpayer. Ron Sandler, the former boss of the Lloyd's of London insurance market, will lead Northern Rock. The Tories today said that Alistair Darling has "no credibility" as Chancellor and should be sacked by Gordon Brown.