First British lender falls victim to global financial crisis
Published: October 28, 2009
BRUSSELS -- The European Union has approved the government rescue and nationalization of Northern Rock, the first British lender to fall victim to the global financial crisis.
EU regulators also approve the spinoff from Northern Rock of a "bad bank" which will take on the unwanted assets that would otherwise compromise the surival of the "good bank."
EU Commissioner Neelie Kroes said today that the restructuring "will allow the bank to become viable in the long term and limit distortions of competition."
-- The Associated Press
Reader Reactions
‘limit distortions of competition’ Cute turn of phrase. It is not government distorting competition, but the open market that distorts competition—through competition. With deep thinking like this going on among the ‘deep thinkers’ we can rest assured the world economy will lurch from one crisis to another like a drunken sailor.
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