14 Jan, 2008
The former head of Lloyd's of London, Ron Sandler, has been
drafted in to lead Northern Rock if it is nationalised.
Weekend news reports reveal that Sandler has released a statement
confirming that the government had asked him to take a leading role
if the Treasury takes over the bank.
Sandler says: "In the event of nationalisation, I have agreed
I will go in as executive chairman."
He explained that his role would be "to get things
stabilised, to make sure the bank has proper plans in place."
The 55-year-old, who previously worked at the Treasury, developing
the government's pension and investment products for low
earners, would also be responsible for ensuring a management teamis
in place at NR.
The government has said it wants a private sale of the bank, but
with ongoing financing problems hampering the bidding process,
nationalisation is becoming a more likely option.
If the bank is taken under the Treasury's control, the cost to the
taxpayer could hit around £50bn, claims a report from The
Daily Telegrpah this morning.
Northern Rock's extraordinary general meeting will be held in