RobertB
February 20th, 2008, 09:08 PM
Rubbish’ mortgages not nationalized
By George Parker and Peter Thal Larsen
Published: February 20 2008 22:01 | Last updated: February 20 2008 22:01
Gordon Brown on Wednesday denied the government was nationalizing “rubbish” mortgages at Northern Rock after it became clear that over a third of the bank’s assets will remain outside state control in Granite, its Jersey-based trust.
Conservatives claimed Granite’s assets of £45bn included some of the best quality Northern Rock mortgages, leaving the taxpayer exposed to more risky loans on the remainder of the bank’s £110bn balance sheet.
The exclusion of Granite, Northern Rock’s special purpose financing vehicle, from the nationalization stunned many MPs and left the government scrabbling to explain the relationship between the nationalized Rock and its Jersey offshoot.
http://www.ft.com/cms/s/0/9c2896c8-dff0-11dc-8073-0000779fd2ac.html
By George Parker and Peter Thal Larsen
Published: February 20 2008 22:01 | Last updated: February 20 2008 22:01
Gordon Brown on Wednesday denied the government was nationalizing “rubbish” mortgages at Northern Rock after it became clear that over a third of the bank’s assets will remain outside state control in Granite, its Jersey-based trust.
Conservatives claimed Granite’s assets of £45bn included some of the best quality Northern Rock mortgages, leaving the taxpayer exposed to more risky loans on the remainder of the bank’s £110bn balance sheet.
The exclusion of Granite, Northern Rock’s special purpose financing vehicle, from the nationalization stunned many MPs and left the government scrabbling to explain the relationship between the nationalized Rock and its Jersey offshoot.
http://www.ft.com/cms/s/0/9c2896c8-dff0-11dc-8073-0000779fd2ac.html