Northern Rock Expected to be Nationalized

A key meeting tomorrow could determine whether beleaguered British mortgage banker Northern Rock will be nationalized, according to a Reuters news report.

Britain's government has asked Ron Sandler, former head of the Lloyd's of London insurance market, to serve as executive chairman should Northern Rock be nationalized. Northern Rock is Britain's largest casualty of the credit crunch, borrowing about 26 billion pounds from the Bank of England since it requested emergency funds in September.

If Northern Rock is put under state control, Reuters reports, shareholders could receive nothing or little for their shares. Sandler said on Saturday he would take the helm in such an event, but no decision had been taken.

Northern Rock said on Monday it was continuing to pursue a private-sector solution.