Thumbs down over bank
TEES businessmen have given the Government a huge thumbs-down over its treatment of Northern Rock, with 71.4% believing it was a mistake to nationalise the stricken bank.
Last week the Banking (Special Provisions) Bill cleared the way for Northern Rock to be brought into temporary public ownership. Some analysts believe it could cut its mortgage book by 50% in the next two years as well as making as many as 3,000 staff redundant.
James Rainbow, divisional director with North-east accountants Brewin Dolphin, said the business community’s reaction was understandable. “If you consider the number of businesses over the last few years that have gone to the wall and have had no help from the Government, it’s a huge change of heart. But crucially banks are seen as a foundation of the economy - it’s not like seeing a firm that makes widgets go bust.”
He did not agree that government intervention was an indication of something more sinister in the banking sector. Recent high street bank results showed they were “pretty solid”, he said.
