Nationalized
Feb 18th, 2008 at 7:24 am by Susie
Translation: They’re fucked. That is to say, we’re all fucked, because these financial interests are now so intertwined around the world:
LONDON — The U.K. government has decided to take full control of troubled mortgage lender Northern Rock PLC, in a surprise move that reflects the depth of the global credit crisis and represents an embarrassment for Prime Minister Gordon Brown.
After a tense weekend of last-minute negotiations with two bidders — a consortium led by entrepreneur Richard Branson’s Virgin Group Ltd. and Northern Rock’s own board — the government decided that it could best serve the interests of taxpayers and consumers by “temporarily” nationalizing the bank, Chancellor of the Exchequer Alistair Darling told a hastily called news conference yesterday. He said the government would introduce the necessary legislation this morning, and that a new management team led by former Lloyd’s insurance market Chief Executive Ron Sandler would assume operational control of the bank immediately.
“I wanted to see a private-sector solution, but it had to be on the right terms,” said Mr. Darling.
