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Oral question asked in the House of Lords, by Lord Barnett (Labour). It was answered on Wednesday, 26 November 2008.


Banking: Northern Rock

Question
My Lords, my noble friend’s comments are absolutely right as regards the action we have taken. However, I gather that Granite was not part of the Northern Rock nationalisation. Is the press report correct that we have some exposure to Granite? If that is the case, what kind of totally unsecured bond did we take in Granite, if we took one at all, which I hope we did not?
Answer

My Lords, Granite is a separately capitalised vehicle in which Northern Rock had an interest known as a seller’s share. That is part of the cascading waterfall of liabilities. That was the case when Northern Rock was taken into temporary public ownership. It is not a bondholder; it has a seller’s equity interest in the Granite structure.


Secondary information

Type
Oral question
Reference
705 c1443-4 
Session
2007-08
Oral question type
Supplementary
Chamber / Committee
House of Lords chamber
Subjects
Northern Rock Granite
Link
View this Oral question on www.publications.parliament.uk