Treasury's 'green light' to Northern Rock bidders - papers 1 October

Lloyds TSB was also reported as having taken a "second look" at the Rock, after abandoning an earlier bid of 200p to 300p per share, but may not proceed with a takeover if the Government does not extend its guarantees to Northern Rock when it comes under new ownership. Northern Rock has borrowed about £8bn from the Bank of England over the past fortnight to fund its activities, and worries persist that the high cost of that borrowing, at 6.75 per cent, will have an increasingly deleterious effect on Northern Rock's profitability. However its mortgage book, currently acting as collateral ...