While we have heard so many rumours and stories about possible takeovers, cash injections and a possible break-up of the business, it seems that Northern Rock just keeps rolling on.  While the authorities have indicated that they want the situation resolved as soon as possible, the loan from the Bank of England has risen to a massive £23 billion – all tax payer’s money!

Despite pressure from the Bank of England and the government to arrange a quick bail-out, the management of Northern Rock do not appear to be in any great rush – is it the fact that the authorities cannot afford to pull the rug from under them, or is it more complicated than that?

In all honesty it seems to be a mixture of the two, because even though the situation is not receiving anywhere near the same amount of press coverage as when it first began, the situation is still very critical – probably worse now than ever before.  While taking a step back, you also need to consider who in their right mind would take on a brand name which has been tarnished, as well as a £23 billion funding position – even though it will be backed by mortgages, loans, etc in the longer term.

Even after all of these weeks there is still no certainty that the business will survive in any shape or form and the longer it drags on the less chance of this happening.  The authorities are now in a very difficult situation as they cannot take the bank “private”, they cannot call in the loan and the pressure they have been exerting for a swift conclusion seems to be falling on deaf ears. 

Quite when and how this one will end is very very unclear.