Companies

Aug 5: Northern Rock plunges into red

The British government is changing the funding it provides for the bank it owns, Northern Rock, in a move which increases the risk to taxpayers. The Treasury is converting 3 billion pounds of outstanding debt into equity in an effort to improve the bank's financial stability. Jane Croft, retail banking correspondent, says the move is likely to concern observers. The move comes as Northern Rock publishes losses of over 585 million pounds in its first half results.