Sunday, February 17, 2008
Northern Rock nationalisation
Posted by David Smith at 04:00 PM
Category: Thoughts and responses

The Treasury, having examined the two remaining private sector bids for Northern Rock, has decided neither served the interests of the taxpayer, so Alistair Darling has announced nationalisation. As set out below, many of us will need a lot of persuading that the return of the failed model of nationalisation is the best way out of this mess. Since it is unthinkable that a nationalised Northern Rock could compete with the private sector on level terms for an extended period, the Treasury talks about temporary public ownership. In his statement, Alistair Darling also talks about the bank being run on an arm's length basis from the government and of it being returned to the private sector when financial conditions permit. His full statement is here.