Brown says Northern Rock response was right
March 27th, 2009 by Yas
Gordon Brown has been publicity defended his handling of the Northern Rock situation after he had criticism over the bank offering risky mortgages after the bailout.
He said:
“I taken the necessary steps to save the bank, which would otherwise have gone into receivership.”
The Tories said failing to end 125% mortgages immediately was “inexcusable” – the Lib Dems called it a “disgrace”.
Gordon Brown, speaking in Brussels recently to EU leaders agreed measures to support the new global economy, and said ministers had taken
” the right action in nationalising the bank” he continued. “We acted when Northern Rock got into difficulty, we’ve taken the actions necessary by bringing Northern Rock into public ownership,” he said. “I think the NAO agrees this was the necessary course of action. The Financial Services Authority had “already said that it made some mistakes in its dealings with Northern Rock earlier on.”
Philip Hammond, shadow chief secretary to the Treasury said;
“officials failed to ask the right questions about the quality of loans Northern Rock was offering. It is really astonishing to discover that the Treasury did not clamp down on that immediately,” he told BBC News. “Taxpayers will find that truly shocking”.
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