Public funds will be protected - British PM
The Prime Minister has promised that public funds will be protected in any agreement reached over the Northern Rock
building society.
Speaking to MPs during Prime Minister's Questions, Mr Brown said he believed the British people thought it right that
action be taken and the struggling financial group be rescued. He said that any settlement on the future of Northern
Rock would "insist" on the protection of public funds.
The Prime Minister added that "all options are on the table" but that finding a private buyer was the "preferred
option".
Northern Rock, a leading mortgage lender, foundered in September due to the global credit crunch - the sudden slowdown
in income caused by debtors, particularly high-risk mortgage borrowers in the US "subprime" market, defaulting on their
repayments.
The Bank of England provided emergency funding before the Government pledged to guarantee savers' deposits on 17
September. A number of businesses, including Richard Branson's Virgin Money group, have been in negotiations over a
potential buy-out.
ENDS