Britain passes Northern Rock nationalization law

Britain passes Northern Rock nationalization law

www.reuters.com

LONDON (Reuters) - Britain's parliament passed legislation on Thursday allowing the government to nationalize Northern Rock (NRK.L: Quote, Profile, Research), five months after the bank became a high-profile casualty of the global credit crunch.

The Banking (Special Provisions) Act allows orders to be issued for the transfer of all shares in Northern Rock to the government and for an independent auditor to calculate how much money shareholders should receive.

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[edit on 21-2-2008 by Jacks56]

[edit on 21-2-2008 by Jacks56]

I know some U.S. banks are in dire straits but I don't think any of them have been nationalized due to the sub prime situation..at least not yet.

How does this effect the shareholders and depositors? When the bank is sold to a private investor and if there are any profits, who receives those? The government or the shareholders?



www.reuters.com
(visit the link for the full news article)

Didnt I just read Gold reserves are being sold out. Id rather give gold then land they dont make anymore land.