Is this the start of a new government bank? The follwoing was issued minutes ago by the Treasury:
Mortgages and Northern Rock. The Government will also consider further ways of addressing the loss of mortgage lending capacity in markets. As a first step, the Government can confirm that Northern Rock is no longer actively pursuing a policy of rapidly reducing its existing mortgage book. Northern Rock is releasing a separate statement on this.
I sense a change of mood. The press release also says:
The situation we find ourselves in is to a great extent a product of banks - all over the world - taking risks that they should not have and which in many cases they did not even understand. And governments all over the world are having to take action to deal with this.
The confidence in the bankers is evaporating.
Now lets see real control taken. And let's see the government lead real structural reform to build a new type of banking of benefit to us all.