European Commission poised to approve Rock restructure
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The European Commission is set to approve Northern Rock’s plan to hive off its good and bad assets as early as next week, it is reported.
A report in the Financial Times says that the EC is expected to authorise the plan on October 28 when it holds its final formal session before its five-year term expires at the end of next week.
Northern Rock submitted the plan to the EC for approval earlier this year.
The EC has to approve Northern Rock’s restructure before the plan can be implemented, to ensure that the proposed split between the good parts of the bank and the bad parts complies with state aid rules.
The FT report also says that the nationalised lender has already started to distribute leaflets to customers explaining how the divided bank would look.
