U.K. to Back Northern-Rock Debt

The U.K. government, struggling to find a buyer for Northern-Rock, said it will guarantee a sale of bonds backed by the bank's home-loans.

Mortgages, consumer loans and some investment-grade securities of the Newcastle, England-based bank would be packaged as debt and sold to investors, the Treasury has said. Northern Rock rose 46 percent in London trading on speculation the proposal will revive interest among potential buyers such as Richard Branson's Virgin-Group.

Via Money-Soft

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