Friday, March 20, 2009
Report into Northern Crock fiasco published
The nationalisation of Northern Rock has faded from the public eye. But a jaw-dropping report into its collapse by the National Audit Office reveals a disgraceful catalogue of waste, incompetence and the wholesale mismanagement of public money. We now discover that even after the Government had taken control, the failed lender handed over £1.8billion to home buyers borrowing up to 125 per cent of the value of their property. What was effectively taxpayers' cash was being given to buyers who were going straight into negative equity. This was a criminal use of public money and didn't do the borrowers any favours, as many have had homes repossessed.