Thursday, 10 January 2008
Goldman's roll the dice on Northern Rock
Alistair Darling has today admitted that it may not be possible to put together a private deal to sort out the Northern Rock mess.
Goldman's who are advising the government have also announced an idea to try and sell the Wreck debt as bonds (junk bonds anyone?).
This is surely nearly the end game. It is highly unlikely that the EU would allow the bonds to be issued as they would be government guaranteed which means illegal state aid.
What this activity does show is that Goldman's perhaps know more than they are letting on about the prospects of the RBS and Citigroup lending to one of Virgin Money or Olivant.
The taxpayers are going to be in the hole for a long time...
Posted by CityUnslicker