Olivant, the investment vehicle headed by former Abbey boss Lugman Arnold, has pulled out of the bidding race for Northern Rock.
Bidders are expected to submit their formal proposals to takeover Northern Rock ahead of today's deadline.
The Bank of England will follow its US equivalent's lead and cut interest rates this month, the Association of Mortgage Intermediaries (AMI's) quarterly report predicts.
The number of approved mortgages fell for the seventh consecutive month in December, according to the Bank of England.
The Treasury Select Committee has proposed giving powers to deal with failing banks to a single member of the Tripartite Authorities as part of a report into the near collapse of Northern Rock.
The Bank of England's Monetary Policy Committee (MPC) voted 8-1 to keep interest rates on hold it was revealed today.
The Bank of England's decision to hold interest rates at the beginning of the year could risk the UK economy, according to Assetz chief executive Stuart Law.
December's cut in interest rates has had no effect on fixed-rate mortgage deals, with the average fixed-rate actually rising by 0.01%, according to Moneysupermarket.com.
The hedge funds challenging Northern Rock's directors, RAB Capital and SRM Global, have been largely defeated in today's extraordinary general meeting (EGM).
Northern Rock shareholders are to attend an Extraordinary General Meeting (EGM) tomorrow to discuss the bank's future.