The Wall Street Journal-20080117-Northern Rock- -Fire Sale--

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Northern Rock: 'Fire Sale'?

Full Text (104  words)

LONDON -- U.K. Prime Minister Gordon Brown said that placing Northern Rock PLC into administration "is a route to a fire sale of assets," indicating that although the government continues to say all options are on the table for the troubled mortgage lender, administration would be the government's least-favored option.

There is increasing speculation that the government will nationalize the bank if it fails to find a private buyer for Northern Rock soon.

Mr. Brown reiterated that the government intends to get back the tens of billions of pounds that authorities have lent the bank since a run on Northern Rock's deposits in September.