INSTANT VIEW-Reaction to Northern Rock nationalisation

LONDON (Reuters) - The following politicians and bank industry figures reacted to news on Sunday that the government is going to nationalise Northern Rock.

GEORGE OSBORNE, CONSERVATIVE SHADOW CHANCELLOR:

"This is the day when Labour's reputation for economic competence died. Gordon Brown has dithered his way to the disaster of nationalisation.

"Now the taxpayer will bear the full risk of lending 100 billion pounds of mortgages in an uncertain housing market. We will not back nationalisation."

VINCE CABLE, LIBERAL DEMOCRAT SHADOW CHANCELLOR:

"Belatedly the government has made the right decision.

"The first priority must be to work out the seriousness of the problems at the bank with an independent audit of its loan book.

"There will be difficult times ahead, especially for the employees, as the bank is downsized. However, there is now hope for the long-term future of the bank when it is eventually sold in more satisfactory conditions."

MERVYN DAVIES, CHAIRMAN OF UK-LISTED BANK STANDARD CHARTERED: