Article: Northern Rock suitors 'will not get guarantees from Bank'

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 ...

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