Northern Rock Nationalized

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According to The Wall Street Journal troubled British mortgage company Northern Rock wil be taken over by the British government.

The newspaper writes "The U.K. Treasury has decided to nationalize troubled mortgage lender Northern Rock PLC in a surprise move that makes the government and British taxpayer the new owner of a financial institution that fell victim to the global credit crisis"

In the US, it should be interesting to see if the Treasury will step forward with any similar rescue for firms like bond insurers Ambac (ABK) and MBIA (MBI)

Douglas A. McIntyre