Nationalisation of Northern Rock that Northern Rock was to be nationalised claiming that the private bids did not offer "sufficient value for money to the taxpayer" and thus the bank was to be brought under a "temporary period of public ownership". The government is the sole shareholder through UK Financial Investments Limited, and the Bank is managed at "arm's length" on a commercial basis by an independent board under Ron Sandler. Customers are not affected by this change. A Government-appointed arbitration panel will decide on a fair price for the compensation to be offered to investors for their shares. Prior to the markets opening
Nationalisation of Northern Rock was revealed that Lehman Brothers and Bradford & Bingley had tabled bids for Northern Rock in December 2007; both of these bidders later fell victim themselves to the banking crisis. Terra Firma Capital Partners, a private equity company, also wanted to purchase some of Northern Rock's prime assets. Northern Rock announced that all offers had been "materially below" the previous trading value. Alistair Darling said on 19 November that the Government would have to approve or veto any sale, in the interests of taxpayers, depositors and wider financial stability. In December the Government prepared emergency legislation to nationalise the Bank,