Northern Rock this week faces a mass sell-off by shareholders if as expected the stricken bank is ejected from the list of top 100 companies on Wednesday, The Guardian reports.
FTSE tracker funds, led by Legal & General, will sell their holdings in the Rock when it stops being a member of the FTSE 100. It is estimated almost 10% of the bank is owned by passive tracker funds that have remained invested in the bank despite its value falling from more than £5bn to about £430m this year. The move is likely to push shares in the bank back on a downward path and spark further calls for the government to stabilise its finances through a full-scale nationalisation. THE CHANCELLOR IS this week expected to infuriate business by standing firm on his decision to introduce ...
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