Northern Rock to axe staff and halve loan book - papers 17 Mar

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Ron Sandler, boss of newly nationalised Northern Rock, will this week reveal plans to cut between 2,000 and 2,500 jobs as the stricken lender is shrunk in an attempt to repay its £25bn taxpayer loan within three years, reports The Telegraph .

The business plan for the state-owned bank will be submitted to European regulators for clearance on Monday. Mr Sandler will unveil a strategy to scale back mortgage lending while luring in new retail savings in an attempt to make Northern Rock attractive to potential future buyers. Sources said he will almost halve the £113bn loan book by writing fewer mortgages and, over time, by selling packages of assets like the £2.2bn of equity-release mortgages offloaded to JP Morgan in January. Gold and oil prices shot up to hit fresh record highs overnight as turmoil in stock markets intensified,...

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