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Article: Northern Rock suitors 'will not get guarantees from Bank'
- Article from:
- The Independent (London, England)
- Article date:
- September 17, 2007
CopyrightCopyright 2007 The Independent - London. Provided by ProQuest LLC. (Hide copyright information)
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Lloyds TSB tried to buy troubled lender w Little will be left but
loan book if drain of funds goes on
By Sean FarrellFinancial Editor
Northern Rock's future as a viable business hangs in the balance
after the Bank of England refused to provide guarantees to potential
bidders.
Lloyds TSB came close to buying Northern Rock at the start of
last week but the deal fell apart. Banking sources said Lloyds TSB
was asking for support from the Bank of England on terms the central
bank had to refuse.
The Bank of England last week backed Northern Rock by offering
funding at a penal rate, said to be 7 per cent, secured on mortgage
assets.
Yesterday the Bank of England denied that it had refused to ...