Northern Rock shares were suspended from trading on the London Stock Exchange this morning after the British government's decision to nationalise the lender.
Britain's Treasury yesterday announced that the bank would be nationalised until financial markets stabilise and it can be returned to the private sector.
Chancellor Alistair Darling said that under the current market conditions neither of the two private proposals to buy out the bank delivered sufficient value for money to the taxpayer.
"The government has decided to bring forward legislation to bring Northern Rock into a temporary period of public ownership," Mr Darling told said.
Britain's fifth-largest mortgage lender already owes taxpayers £25 billion (€33.4 billion) and has been put on the government's books as around £90 billion of public debt.
A consortium led by billionaire Richard Branson's Virgin Group had been the front-runner, ahead of an offer led by the bank's management team. Both were told last week to improve their offers.
