Nortrhern Rock could cost the taxpayer money

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The FT reports that Alastair Darling now believes that the Northern Rock debacle could cost the taxpayer money because it may be unable to repay the debts it now owes to the Bank of England, despite security being available.

Was there ever a better reason for starting a review of the whole method by which debt is issued and securitised by banks?

Isn't it time to bring the whole SIV / SPV / CDO fraud out into the open?

And isn't now the time for the UK to lead the way in designing mechanisms that can allow securitisation of debt on balance sheet and with transparent accountability built into the process, and entirely onshore? I think that is possible. Now is the time to do it.

Surely this is not beyond our combined wit?


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