"Bad bank" burden on taxpayer declining

In recent news strories, The Journal has reported that Northern Rock (Asset Management) plc is now making  a profit.

Since 24 May 2010, retail deposits of over £50,000 with Northern Rock plc have no longer been guaranteed by the taxpayer.

As a result, the contingent liability on the taxpayer has been reduced by £2.8 billion.

There is still a contingent liability of £2.9 billion for fixed term deposits of over £50,000, but this will devline as they mature.

All of this supports the contention that we have long made at NRSSG that the taxpayer was likely to come out of the Northern Rock intervention with a profit - which is why we shareholdes should be treated fairly.