This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7232234.stm

The article has changed 4 times. There is an RSS feed of changes available.

Version 2 Version 3
Rock to appear on public accounts Rock to appear on public accounts
(19 minutes later)
Northern Rock will appear on government accounts, the Office for National Statistics has decided.Northern Rock will appear on government accounts, the Office for National Statistics has decided.
The decision from the Office for National Statistics (ONS) had been widely expected as a result of the government's rescue package.The decision from the Office for National Statistics (ONS) had been widely expected as a result of the government's rescue package.
It means the government may be at risk of breaking its rule to keep net debt below 40% of national income.It means the government may be at risk of breaking its rule to keep net debt below 40% of national income.
The ONS stressed that the statistical change to public status should not be confused with nationalisation.The ONS stressed that the statistical change to public status should not be confused with nationalisation.
'In charge''In charge'
Under the change, Northern Rock is to be classified as a public financial corporation for statistical purposes.Under the change, Northern Rock is to be classified as a public financial corporation for statistical purposes.
Gordon Brown's sustainable investment rule is smashed to bits Robert Peston, BBC business editor Read Robert Peston's blog
This means that the ONS judges that the government is in charge of Northern Rock's "general corporate policy".This means that the ONS judges that the government is in charge of Northern Rock's "general corporate policy".
"This is largely due to powers that the Bank of England has taken as part of its secured lending facility arrangements," the ONS said."This is largely due to powers that the Bank of England has taken as part of its secured lending facility arrangements," the ONS said.
It gave examples of the things that Northern Rock cannot do without government permission - such as corporate restructuring, making dividend payments and buying or selling certain types of assets.It gave examples of the things that Northern Rock cannot do without government permission - such as corporate restructuring, making dividend payments and buying or selling certain types of assets.
'Risk of loss''Risk of loss'
The BBC's business editor, Robert Peston reckons Northern Rock adds about £100bn to the national debt, mostly secured against the mortgages of the Rock's customers. The BBC's business editor Robert Peston reckons Northern Rock could add up to £100bn to the national debt, mostly secured against the mortgages of the Rock's customers.
"Even so, a portion of that £100bn is genuinely taxpayers' money at real risk of loss, because the value of those assets could turn out to be less than the Government hopes." "Even so, a portion of that £100bn is genuinely taxpayers' money at real risk of loss, because the value of those assets could turn out to be less than the government hopes."
"However, it's impossible to assess that risk of loss with scientific precision," Robert Peston said."However, it's impossible to assess that risk of loss with scientific precision," Robert Peston said.
The statistical change will be back-dated to 9 October 2007, which was when the Treasury extended its guarantees to cover new savings deposited at Northern Rock. The statistical change will be backdated to 9 October 2007, which was when the Treasury extended its guarantees to cover new savings deposited at Northern Rock.