Northern Rock is to be nationalised after the House of Lords backed down on its demands for additional checks on the bank.
The Banking (Speciali Provisions) Bill was sent back to the Commons because of concerns over Freedom of Information laws and auditing procedures.
However, MPs rejected peers' demands and the Lords agreed to back down late on Thursday.
The bill has now been given royal assent after MPs voted 277 to 167 against independent audits of the banks and 268 to 171 to exempt the bank from Freedom of Information laws.
The Government says Northern Rock’s annual accounts will be published by the end of March, following an independent audit.
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"There is more to this story that has to be told. This may go down as one of the largest frauds in UK history. The Granite story and the type of trust used could not possibly have gone down without Treasury knowledge and assent. How is it possible an independent audit is being rejected? Did you see the figures on the composition of NRock’s new loan business in 2007? Apparently more than 30% was in the 125% LTV product that they disastrously introduced at the very peak of the house price increase and economic cycles. This is fraud, pure and simple. For the government to buy NRock without the best assets is either gross incompetence, but when you consider the external advisors they surrounded themselves with, you have to believe there is more at work here. I am not a conspiracy theorist, but a banker with 20 years of experience ranging from local branch manager to global capital markets underwriter. Why isn’t this being more exposed in the press than a simple: 'Lords back down on Northern Rock demands.'?" Roy Fraser, managing director, Incapital Europe LimitedIFAonline
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