Darling statement on Northern Rock

LONDON (Reuters) - Chancellor Alistair Darling announced on Sunday the government was nationalising mortgage bank Northern Rock.

Here is the full text of his statement, as reported on the Treasury Web site.

"I would like to make a statement on the Government's decision on the future of Northern Rock. I am doing so today because it is necessary to make a formal announcement before the markets open tomorrow morning.

The Government has now completed its review of the two detailed proposals on the table. We have made our choice after considering all proposals.

Last autumn, the Government stepped in to save Northern Rock to stop its problems spreading to other parts of the banking system.

But in current market conditions, we do not believe that they deliver sufficient value for money for the taxpayer.

So the Government has therefore today decided to bring forward legislation to take Northern Rock into a period of temporary public ownership.

We have done so after full consultation with the Bank of England and the Financial Services Authority.

Northern Rock will continue operating as a bank on a commercial basis. It will be open for business as usual tomorrow morning and thereafter.