James Forsyth

Has Labour found a way to avoid nationalising Northern Rock?

Has Labour found a way to avoid nationalising Northern Rock?
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News has emerged from the PM’s trip to China that Alistair Darling will make a Commons statement about Northern Rock on Monday.  On Boulton and Co, Jonathan Levy reports that the word is that Goldman Sachs has advised the government to bundle up the money that is being using to support the stricken bank and sell it off as government bonds. The thinking is that this scheme would allow the taxpayer to recover their money and make the bank a more attractive proposition to private buyers.

The BBC is saying that Virgin is now in pole position to take over the bank. Apparently, shareholder objections to the Virgin bid will be overcome through the threat of nationalisation.

Written byJames Forsyth

James Forsyth is Political Editor of the Spectator. He is also a columnist in The Sun.

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