Risk & Economy » Regulation » Government calls for Northern Rock interest


(SHARECAST) – The government has begun talks with potential advisers about how best to get nationalised bank Northern Rock off its books.

Northern Rock and the UK Financial Investments (UKFI), the body set up by the Labour government to look after its stakes in the bailed-out banks, have given investment banks until Monday 24 January to register their interest. Tenders from a chosen shortlist will have to be in by the end of January.

Goldman Sachs is thought likely to be among the frontrunners, having helped ministers decide the fate of the Newcastle lender at the end of 2008 and early the following year. Credit Suisse, UBS and Bank of America Merrill Lynch are also expected to be involved.

A possible stock market flotation is another option for the so-called “good bank”, stripped of £22bn of government loans, leaving a lender financed by retail deposits.