Northern Rock is to be nationalised

"Ever since the British government lent tens of billions of pounds to Northern Rock and guaranteed its deposits, nationalising the bank has looked the best way to protect taxpayers' money. There has been five months of delay during a search for a private sector buyer, but the right choice has now been announced by Alistair Darling, the chancellor", notes the daily as a Bill will be introduced in the Commons this February 18th to give the decision legislative effect. "Nationalisation was never an attractive option; it was the least bad of the limited options available. A private rescue that needed no public money would have been ideal, but Northern Rock was in too much trouble for that. ... Northern Rock's spell in public ownership will be temporary. It will be managed at arm's length. Most of all, nobody claims that Northern Rock will perform better under government control, only that it is necessary because of the straits it is in."

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