The Debacle of Northern Rock Case Study Example | Topics and Well Written Essays - 500 words

The Debacle of Northern Rock - Case Study Example at a lower place the nationalization approach, the taxpayer should recognise its outstanding loans to Northern Rock repaid in full, with interest and that the business can be returned to the private domain as financial markets stabilize. There were two private proposals, one from Virgin Group and one in-house shimmer from the banks management team. Neither bid concluded the Prime Minister delivered value on the dollar for taxpayers. Under the plan, $49 billion dollars must be paid back to the taxpayer within three years. The government repeatedly insisted a private sale was its preferred option. However, after five months of intense speculation about the future(a) of Britains most public casualty of the global credit crunch, Brown said that nationalization was the best plectrum until market conditions improve. According to Alistair Darling, the private proposals involved risks for taxpayers and significant government subsidy. Bot h also involved bidders give below the market rate while the government continued to provide guarantees and financing.Now the plan finds itself at a lower place the scrutiny of the Economist who has opined from the start that nationalization was not the proper solution. Northern Rock would remain nationalized until the menses financial climate improves.