Treasury to split Northern Rock next year

The restructure will take effect from 1 January and the bank will be split into two separate companies. Northern Rock plc will be a savings and mortgage bank that will offer new savings accounts and lend new mortgages, as well as service all existing customer savings accounts. Northern Rock (Asset Management) plc will hold and service the majority of the existing mortgages (worth around £50bn), all unsecured loan accounts, the Government loan and the Company's outstanding wholesale funding and subordinated debt as at the Transfer Date. The majority of mortgage accounts will remain ...