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Darling: Rock won’t be sold to big bank
CHANCELLOR Alistair Darling signalled yesterday that he would block large banks from buying Northern Rock or the government’s stakes in Royal Bank of Scotland and Lloyds Banking Group in a bid to promote competition.
Speaking at a dinner hosted by employers’ organisation the CBI, Darling said the government would sell its banking stakes in a way that “supports new banks entering the market”.
Northern Rock is likely to be split into a “good bank” housing deposits worth £20bn, with the government holding on to the bank’s toxic assets on a more long-term basis. Darling is also pondering further measures to smooth entry to the market for new players, Treasury sources said.