Chancellor urged to resist Northern Rock sale

Apr 27 2009 by Adrian Pearson, The Journal

THE Chancellor is to be told he should halt a "rushed and needless" sale of Northern Rock this year amid fears hundreds of jobs could be put at risk.

A hurried sale of the Rock could be completed by the end of the year as the cash-strapped Government eyes up a multi-billion pound sale, it has been claimed.

In a sign that the Government can no longer afford to bail out the banking sector, financial experts have been called in to help fast-track a return to the private sector for the Rock.

But critics say plans to offer the business to Virgin or Santander, owner of Abbey and other banks, could end in staff being made redundant. Newcastle Central MP Jim Cousins, who sits on the Commons Treasury select committee, said he would seek assurances from Alistair Darling today that a quick sale will not get the go-ahead at the expense of North jobs.

Advisers at international financial services group Credit Suisse are already working on plans to effectively split the bank in two.

Under this plan Northern Rock would be viewed as having one of the safest mortgage books in the world as the Government takes over the high-risk debt.

It is believed Treasury officials have approached Virgin Money, National Australia Bank and Santander about a possible deal.