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Northern Rock - unbelievably it gets worse!

Northern Rock's 'best mortgages' sold offshore - Telegraph

Gordon Brown was last night accused of losing control of Northern Rock after it emerged that £47 billion of the bank's best mortgages have been sold on to a little-known offshore company based in the Channel Islands.

To compound the problem, Northern Rock is alleged to also have an agreement to continue supplying top-quality mortgages to Granite once existing loans expire. If it fails to meet its obligations, Northern Rock may lose up to £5 billion, according to the Conservatives.

Yesterday, opposition parties accused the Government of leaving the taxpayer open to huge losses following Northern Rock's nationalisation.

George Osborne, the shadow chancellor, said: "The way Northern Rock and Granite will operate under nationalisation leaves the taxpayers saddled with all the bad debts, with Granite taking the best mortgages.

"This is further proof that under the government's plans, the taxpayer comes last."

Vincent Cable, the Liberal Democrats' Treasury spokesman wrote to Alistair Darling, the Chancellor, demanding an explanation.

He said: "After five months of Government indecision it would seem that in the rush to nationalise Northern Rock ministers have forgotten about the 40% of the company's best assets.

As long as those North Eastern Labour MPs keep their jobs who cares, eh?

Comments

That's one hell of an administrative error. Perhaps someone put a list of the best assets in the post to the Government but it never arrived at its destination?

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