Unconfirmed rumours are saying that the FSA will suspend trading in Northern Rock at the beginning of trading in London Monday 17th.
This will be closely followed, midday, by the directors decision to call in the Administrators.
Speculation has been building during the weekend on the future of Northern Rock, after at least £2bn in deposits were withdrawn on Thursday and Friday.
It is now likely that the Bank of England (or should we say the taxpayers) will have to pick up the costs of this failure.
2 banks have already indicated their willingness to talk to administrators in order to buy Northern Rock, the first being the UK's Lloyds TSB and the second the National Australia Bank, Australia's biggest bank which already has substantial holdings in the UK.
The Government's ineptitude and financial mismanagement is now beginning to unravel. Gordon Brown is likely to be seen as the direct cause of this and other failures in the financial markets, which is unlikely to be the last.
Banks and governments unite at times of financial crisis in
talking the markets up, pretending there is no problem, that everything
is under control. Shrewd commentators reckon that we are teetering on
the precipice of financial meltdown.
A story here is instructive. The State bank of Saxony has lent €65bn to the US market, despite having barely €200m of equity.
NuLab – Destroying Britain from the inside out.