FACTBOX - Major nationalisations and bailouts

Mon Sep 29, 2008 1:12pm BST
 
Email | Print | | Single Page
[-] Text [+]

(Reuters) - Mortgage lender Bradford & Bingley is being nationalised and part of its business is to be sold to Spanish bank Santander.

Following is a list of some previous nationalisations or bailouts by the government:

* ROLLS-ROYCE - In 1971 Rolls-Royce was rescued from bankruptcy following mounting engine development costs. The deal split the car business from aeroengines which was nationalised.

* BRITISH LEYLAND - In 1968 a merger created the vast carmaker with 70 factories. The group ran out of cash in April 2005 and cut 5,000 jobs after failing to secure a rescue deal with China's Shanghai Automotive Industry Corp. The company was later sold to Nanjing Automobile Group for an unknown sum.

* JOHNSON MATTHEY BANK, NATIONAL HOME LOANS - In 1984 the Bank of England rescued Johnson Matthey Bank, buying it for one pound and putting in its own managers.

-- National Home Loans hit trouble in 1991 after a fall in property prices. A Bank-backed lifeboat saved NHL from collapse.

* RAILTRACK - Railtrack was put into administration -- a form of creditor protection -- in 2001 after the government lost faith with management and stopped subsidising the company.

* BRITISH ENERGY - Britain extended an emergency aid package totalling 650 million pounds in September 2002 when power prices fell below the company's production costs. In late 2003 the company's creditors signed a restructuring deal that handed them control for forgiving more than half its 1.3 billion pounds debt.

* NORTHERN ROCK - Troubles in the fifth largest mortgage lender started in mid-2007 when the credit crunch hit its ability to raise cash in money markets. The Bank of England bailed it out in Sept 2007, promising emergency funds.  Continued...

 
Zhu Zhu pet
Can I have one for Christmas?

The hottest toy in the U.S. this Christmas is an interactive hamster. It does not come from one of the major toy brands or from a movie but a small, seven-year-old company from Missouri.  Full Coverage 

Market Update

  • UKUK
  • USUS
  • Europe
  • Asia
  • UK Most Actives

Most Popular Business News on Reuters UK

  • Articles
  • Videos