Press Release: State aid: Commission extends in-depth investigation into UK aid package for Northern Rock

The European Commission extended the scope of its in-depth investigation under EC Treaty state aid rules, launched on 2 April 2008, into a UK aid package for Northern Rock, following substantial amendments notified on 30 March 2009. The main change introduced is the split of Northern Rock into a 'good' bank, which would continue commercial activities, and a 'bad' bank with most of the previous mortgage loans, which would be wound down. The Commission has to examine, whether the changes will enable Northern Rock to return to long-term viability while avoiding undue distortions of competition. The extension of the in-depth investigation gives interested parties the possibility to comment on the proposed measures; it does not prejudge the outcome.

BBC News, 26.6.09: Northern Rock confirms split plan http://news.bbc.co.uk/1/hi/business/8121517.stm

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