Monday, January 21, 2008

Northern Rock deal is 'economic incompetence'

Robert Winnett and Andrew Porter Last Updated: 1:51pm GMT 21/01/2008

Government plans to rescue Northern Rock with more than £50bn in state-backed loans and guarantees have been dismissed by the Conservatives as an act of "economic incompetence" which could saddle taxpayers with massive debts for decades to come.
This morning, the Treasury unveiled plans to turn the £25bn loaned by the Bank of England to Northern Rock into bonds, which will be sold to investors and guaranteed by the Treasury. The scheme was devised by investment bank Goldman Sachs.;jsessionid=33SK0SL3EGBK5QFIQMFSFFWAVCBQ0IV0?xml=/money/2008/01/21/bcnrock621.xml

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