More than 50 MPs have called for the remutualisation of Northern Rock

REMUTUALISATION OF NORTHERN ROCK - EDM 1351

• Session: 2010-11
• Date tabled: 26.01.2011
• Primary sponsor: Umunna, Chuka
• Sponsors:
  • Campbell, Menzies
  • Cruddas, Jon
  • Evans, Jonathan
  • Lucas, Caroline
  • McKinnell, Catherine

That this House notes that the three year anniversary of the nationalisation of Northern Rock falls in February 2011; recognises the need for competition and choice in the financial services sector; welcomes the Government's commitment, articulated in the May 2010 Coalition Agreement, to bring forward detailed proposals to foster diversity in financial services, promote mutuals and create a more competitive banking industry; believes that a thriving mutual sector adds to the diversity and strength of the UK's financial system; applauds the democratic structure of financial mutuals which make them accountable to their customers, as well as their strong record for customer satisfaction and links with the communities they serve; further recognises that financial mutuals' traditional business model involves less risky financial activity than other firms in the sector; is concerned by the consolidation in the UK financial services sector following the financial crash of 2008; further notes that the Government has yet to outline its position on the future of Northern Rock and that UK Financial Investments (UKFI) has issued an invitation for expressions of interest from corporate finance advisers to work with both UKFI and Northern Rock in the evaluation of the strategic options for the company; and calls on the Government to give equal and due consideration to a mutual option for the future for Northern Rock by requiring UKFI to undertake a feasibility study and seek advice into remutualising Northern Rock plc.