THE North East’s long-term interests must be considered in any sale of Northern Rock, says the MP whose constituency is home to the bank’s headquarters.
Newcastle Central’s Chi Onwurah also warned the Government against simply selling the bank for short-term interest amid speculation that Chancellor George Osborne could kick-start the sale of the Rock today.
The bank was nationalised in 2008 after its near-collapse in the credit crunch.
It was subsequently split into two – a mortgage and savings bank called Northern Rock plc and Northern Rock Asset Management (NRAM) to house so-called toxic loans.
The first part, consisting of its retail savings base and about 70 branches, is set to be sold. NRAM will continue to be owned by the taxpayer.
More than 100 MPs from across the political spectrum have called on the Treasury to give “equal and due consideration” to allowing Northern Rock to become a mutually-owned building society again.
But Mr Osborne is expected set out plans to sell the Rock in his annual Mansion House speech in the City of London today after advisers suggested a sale was the best option.