Brown Misrepresented Return On Sale Of Bank
Gordon Brown has allegedly misled the UK public over Northern Rock, claiming that the bank could be sold for a profit though advisors to the Prime Minister told him this was not possible.
At a press conference in February Mr Brown stated that, when the financial markets recovered, Northern Rock could be sold for a profit, thus justifying the support of the bank. His own advisors though had already told him that the best he could expect was a loss of around GBP450 million, with the most likely outcome being a loss of nearly GBP1.3 billion!
A statement from the Treasury has been made that claims the move to prop up Northern Rock was taken in order to stabilise the financial sector and avoid the whole market collapsing. There was no intention to make a profit they claim, which would be fair enough if that was made clear at the time. Instead though Gordon Brown claimed it will cost the tax payer nothing, which is patently untrue from what has been revealed.