Northern Rock losses grow by more than £500m - papers

The nationalised lender revealed yesterday that its capital base, the key measure of financial strength, “has now reduced to a level below its minimum regulatory requirement”. The breach occurred despite a special waiver from the Financial Services Authority (FSA) that allowed the bank to flatter its reserves levels.  Analysts calculated that, to be in breach, the bank must have lost more than £500m in the past six months alone. Last year, Northern Rock made a £1.36bn loss after £1.15bn of bad debts. In December, a third of its £67bn mortgage book was in negative equity. Full story… A...