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| Version 1 | Version 2 |
|---|---|
| Darling unveils Rock rescue plan | Darling unveils Rock rescue plan |
| (10 minutes later) | |
| Chancellor Alistair Darling has outlined details of a funding plan that could help facilitate a private sale of Northern Rock. | Chancellor Alistair Darling has outlined details of a funding plan that could help facilitate a private sale of Northern Rock. |
| Under the proposed solution, the £25bn Bank of England loan made to the troubled bank will be converted into bonds and sold to investors. | Under the proposed solution, the £25bn Bank of England loan made to the troubled bank will be converted into bonds and sold to investors. |
| The bonds would be guaranteed by the government to encourage a private buyer to come forward. | The bonds would be guaranteed by the government to encourage a private buyer to come forward. |
| Bidders have until 4 February to detail proposals based on the plans, he added. | Bidders have until 4 February to detail proposals based on the plans, he added. |
| The scheme was proposed by bankers Goldman Sachs and was given the green light by Prime Minister Gordon Brown over the weekend. | |
| No British Government has ever provided financial help on that scale to a business Robert Peston Peston's blog: Rock rescue explained | |
| In effect, it turns Northern Rock debt into government bonds or gilt-edged stock. | |
| It would mean the taxpayer would be exposed to Northern Rock for a much longer period than planned. | It would mean the taxpayer would be exposed to Northern Rock for a much longer period than planned. |
| The Treasury extended the Bank of England loan facility for the stricken bank until 17 March. | The Treasury extended the Bank of England loan facility for the stricken bank until 17 March. |
| "The scale of the financial support the Chancellor has today promised to provide to Northern Rock is breathtakingly large and without precedent," said the BBC's Business Editor Robert Peston. | |
| "No British government has ever provided financial help on that scale to a business." | |
| Reports over the weekend said that Sir Richard Branson's Virgin Group was preparing to make an improved offer for the beleaguered lender. | |
| According to the Sunday Times, Virgin is preparing to cut its proposed stake in Northern Rock from 54% to 45%. Such a move would allow existing shareholders more room to share in any recovery in the price of Northern Rock stock. | |
| On Saturday, Sir Richard said he had a "winnable package" to ensure the success of his bid for Northern Rock. | |
| The other interested party is the Olivant group, led by former Abbey boss Luqman Arnold. |