Alistair warns the banks: Keep your hands off my Rock.

September 9th, 2009 by tom | Filed under Daily News, Money Management, Recession, Retail, Saving, UK Bank Accounts, UK Banks.

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UK Chancellor of the Exchequer Alistair Darling has sent out a very strong signal that the few remaining privately owned banks in the UK will be disallowed from gaining control of state-owned Northern Rock. He went on to add that the taxpayer’s shares in Lloyds Banking Group and Royal Bank of Scotland will not be available for sale to members of the UK banking community.

Darling further expanded his stance on the subject by outlining that as the UK government begins to scale back its holdings in Northern Rock and eventually the other two banks, it will do so in a manner that will encourage new entrance into the UK banking community. .

The denationalisation of Northern Rock is expected to take place prior to the general election, anticipated to be as early as next spring. Prime Minister Gordon Brown, as well as Chancellor Darling, is well aware that if the sale of Northern Rock goes well it will strengthen their chances of being re-elected, which at the moment are not strong. Their plan is for the private sector to pay around £20 billion for the Rock’s retail deposits, while the bank’s toxic assets will be retained by the UK government to be redeemed in stages.

Mr. Darling envisions and encourages the entry of high street retailers and similar bodies, in order to make their presence felt as high street banking entities. He apparently approves of their management capabilities to that of the banking community.

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