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Northern Rock: Nationalisation

Volume 491: debated on Wednesday 22 April 2009

To ask the Chancellor of the Exchequer what definition of success fee was used by his Department in its discussions with Goldman Sachs on the taking into temporary public ownership of Northern Rock. (267583)

[holding answer 30 March 2009]: The Treasury and Goldman Sachs agreed it would have been inappropriate for a success fee to form part of the final sum paid for the advice given by Goldman Sachs in relation to this matter. No such fee was paid.

To ask the Chancellor of the Exchequer what due diligence work was carried out in relation to (a) Northern Rock and (b) Northern Rock’s loan book prior to taking the bank into temporary public ownership. (267584)

[holding answer 30 March 2009]: The decision to take Northern Rock into temporary public ownership was based on a full assessment of the value for money case.