Northern Rock media round-up no. 1

Here's our selection of the Northern Rock media coverage in the past week or so:

In 'Northern Rock shareholders welcome plan' (22/01/08), the Financial Times reported that Rock shareholders welcomed government plans as "increasing the chances of an indepdendent, commercially viable future". It quotes NRSSG founder Robin Ashby reacting to the proposals:

"It gives a platform for those people who have some realistic chance of putting together rescue plans in a timely fashion," said Mr Ashby.

On 21/01/08, the Daily Mail reported on accusations of a "cosy stitch-up" between Gordon Brown and Sir Richard Branson. The Prime Minister has admitted he discussed the deal with Sir Richard while in China earlier this week.

Sunday's Observer (20/01/08) asked "how is the Geordie bravado holding up in the face of dire economic - and footballing - circumstance?"

Small investor Robin Ashby bought his shares in Northern Rock to show his support for the local economy. 'It is one of only two big quoted companies based in the north east,' he says. It is also, he adds, 'fantastically' important to the area - about 3,500 of its 6,300 employees are based in Newcastle and a further 1,500 in nearby Sunderland. Northern Rock is one of the few businesses employing significant numbers of graduate trainees - many of its senior management, including former chief executive Adam Applegarth, joined the company that way. Its charita ble foundation is a 'significant player' in local projects; and, of course, its name is emblazoned on the shirts of Newcastle's football team.

Ashby's loyalty prevented him from selling out last August, when the first hints emerged that its business could be affected by the sub-prime crisis. He remained faithful even when the repercussions from bad lending in the US sent Northern Rock to the Bank of England for help and savers queued to withdraw their money.
Like the rest of the Rock's shareholders, large and small, he hopes that loyalty will be repaid with a sale of the bank to one of the two private-sector bidders. But the odds on some form of nationalisation remain significant, for all last week's assurances by Alistair Darling and Gordon Brown that a private-sector solution remains the preferred course.