David Cameron – ‘Northern Rock deal is damaging and dodgy’

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Conservative leader, David Cameron, has accused Prime Minister Gordon Brown of being ‘a used car salesman who won’t tell you the price’ and said that the Northern Rock deal is ‘damaging and dodgy’.

The Government has outlined plans to turn the £25 billion lent to Northern Rock by the Bank of England into bonds guaranteed by the government.

The bonds will be sold to private investors under the plans, drawn up by investment firm Goldman Sachs, potentially to speed up a private sale.

This would avoid nationalisation of the bank but it is not yet known if private buyers will have the funds required for the deal.

David Cameron has responded by saying taxpayers had a right to know what their total exposure was under the government’s plans for the crisis-torn bank, before adding that he believed it was £55 billion. Mr Cameron added that the Northern Rock deal was as much a rescue package for Gordon Brown’s reputation.

Furthermore, Mr Cameron attacked the prime minister for flying to China with Virgin’s Sir Richard Branson – one of the principal bidders for Northern Rock, saying it was ‘bad judgement’.

Mr Brown has defended his position and said the government’s plans would protect the interests of the taxpayer in the best possible way.

So far, there are 3 proposals for Northern Rock who include a consortium led by Sir Richard Branson’s Virgin Group and Olivant, run by Luqman Arnold, former Abbey chief executive. In addition, a standalone plan is being developed by the board of Northern Rock.


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