Alistair Darling, the Chancellor of the Exchequer, has announced that Northern Rock will be brought into temporary public ownership after two private sector takeover bids were rejected because they did not offer "sufficient value for money for the taxpayer".

 

Mr Darling said: “It is our belief that the company can be moved back into the private sector at the earliest and most prudent opportunity.”

 

George Osborne, the shadow Chancellor, accused the Government of making a “panic decision”. “I think nationalisation does enormous reputational damage to the UK as a place for financial services,” he added.

 

Do you agree that the nationalisation of Northern Rock will damage Britain’s reputation? Did the Government panic?

 

Or was Mr Darling right to refuse private sector offers which he believed did not offer taxpayers value for money? What other options did Mr Darling have?

 

Are you worried that taxpayers will have to pay out billions more to compensate Northern Rock shareholders? Do you think Northern Rock will ever be returned to the private sector?

 

Is the Government capable of running a bank successfully?

 

Source: Sunday Telegraph

 

Personaly I don't think they are capable of running a whelk stall!

The damage of letting Northern Rock go under would have cost the UK economy many many times more than it did to bail it out

Politically, no government could possibly allow a bank the size of Northern Rock to go bust. Cynics (and I can be pretty cynical myself :lol:) might say that there are too many votes to be lost but that's all part of living in a democracy. Ultimately, nationalisation has to be the least bad option. Mind you, I would have preferred the government to have appointed someone to run the bank who actually pays tax in this country. :angry:

Edited February 24, 200817 yr by Suedehead2

The damage of letting Northern Rock go under would have cost the UK economy many many times more than it did to bail it out

 

i agree

 

i reckon if the government sat back and did nothing their/ the/ our/ the countries situation would be far worse off.

 

what the government did wasnt very palatable, but there wasnt a better alternative.