Bbc - No One Wants To Buy Northern Rock!

[MRMX9]

Article just appeared on the BBC website (so it must be true). A number of banks have eyed up a takeover for Northern Rock - but no deal looks likely in the short term.

http://news.bbc.co.uk/1/hi/business/6997264.stm.

[sambino]

Looks like no one wants their loan liabilities as they cannot sell it on in the current climate

[Roman Abramovitch]

But on the other hand.......this article !!!

Either way watching their share price on Monday will be interesting !

The Governor of the Bank of England seems to have got himself in a hole over this fiasco.

LONDON (Reuters) - Embattled bank Northern Rock is preparing for a sell-off that could see its 100 billion pound mortgage portfolio divided between the country's other major banks, the Sunday Telegraph said.

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The newspaper said a plan under discussion between government and Bank of England officials was effectively a private sector rescue of the lender, involving other banks and the central bank.

"If the run on deposits looks out of control, Northern Rock would effectively be nationalised and put into administration so it could be wound down," the paper quoted an official as saying.

The BoE declined to comment and Northern Rock could not immediately be reached.

The Sunday Telegraph quoted a source close to Northern Rock as saying if its shares fall heavily again on Monday then a fast break-up and sale of its assets "looks inevitable".

The stock fell more than 31 percent on Friday.

Speculation that Northern Rock could be taken over has been widespread since the BoE stepped in on Friday to rescue the bank, promising to provide emergency funds after a global credit crunch hit the bank's ability to raise cash in money markets.

The Sunday Times said Lloyds TSB had held detailed talks to mount a rescue of its rival, but a deal was ultimately blocked by the BoE and Financial Services Authority, who were fearful that it would cause greater consternation in financial markets.

Customers have withdrawn about 1.5 billion pounds from the bank in the last two days, newspapers estimated, representing about 6 percent of its deposits.

(Additional reporting by Sumeet Desai)