THE nationalisation of Northern Rock could prove extraordinarily profitable for UK taxpayers, according to Simon Ward, economist at New Star.
Ward stressed that the nationalisation could prove to be a silver lining for taxpayers, assuming the Government can avoid making a significant compensation payment to equity and subordinate debt holders. "Despite Treasury guarantees, Northern Rock has been forced to offer high interest rates to retain its retail deposit base, with savers concerned that their accounts would be frozen in the event of the bank going into administration," he said. Ward pointed out that, including the temporary loyalty bonus, Rock's tracker online account was currently paying 6.99pc AER. "Nationalisation r...
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