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Latest Business News

Northern Rock Plan Approved

Thursday, February 21, 2008 7:41:55 PM
By JANE WARDELL

LONDON (AP) - Parliament passed legislation on Thursday that will allow the government to make Northern Rock PLC the first sizable British bank to be nationalized in 25 years.

News of an emergency loan to the struggling Northern Rock from the Bank of England last September had triggered the first run on a British bank in more than a century.

On Thursday night, the House of Commons approved the nationalization legislation by a margin of 126 votes. The bill then went back to the House of Lords, where its legislators first rejected three provisions of the bill. They later dropped their opposition without a vote.


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