http://www.guardian.co.uk/business/2008/feb/17/northernrock.nationalisation

Northern Rock to be nationalised

This article was first published on guardian.co.uk on Sunday February
17 2008. It was last updated at 16:34 on February 17 2008.

The Treasury today announced that the beleaguered bank Northern Rock
will be nationalised.

In a statement, Chancellor Alistair Darling said "under the current
market conditions" neither of the two private proposals delivered
"sufficient value for money to the taxpayer".

It marks the failure of the government to reach a deal with the
private sector over the future of the bank. Emergency legislation will
now be rushed through Parliament.

Mr Darling said the move met "our objective of protecting taxpayers'
interests".

He said he had been told by the Financial Services Authority that the
bank was solvent and that its mortgage book remained of good quality.

Ron Sandler, the former chief executive at Lloyd's of London, will now
run the business.