Nationalised Rock could cause another bank run

Nigel Frudd, head of financial services at Rosenblatt Solicitors, says the move to nationalise the bank would also breach EU subsidy regulations. He says a nationalised Northern Rock would be backed by taxpayers' money, making it an almost risk-free place to deposit money and leading to an un-competitive market. Commenting on yesterday’s decision by the Chancellor, Frudd says: “It [nationalisation] provides Northern Rock with a guarantee that other banks cannot match and, in fact, could indirectly have exactly the opposite effect of what the government was trying to avoid – another run on...