Northern Rock loses $1.2bn in first half of 2009

British Bank, Northern Rock, has reported losses of more than $1.2Billion (UK£724 Million) for the first 6 months of 2009. This signals a worsening of the situation for the bank as it shows an increase of 24% over the loss for the first 6 moths of 2008 in local currency.

The bank, that was nationalised in February 2008 owes the British Government a whopping $18Billion and the government is waiting regulatory approval from the EU to pump even more taxpayers money into the bank.

Northern Rock is in the process of being split into two companies, one of which will hold savers’ money and be responsible for new lending, while the other will hold many of the existing loans and be responsible for paying back loans to the government.

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