MW: Treasury confirms Northern Rock restructuring date
By William L. Watts
LONDON (MarketWatch) -- The British Treasury on Tuesday said it issued a transfer order confirming that troubled bank Northern Rock will be split into two separate entities on Jan. 1. "Now we can prepare the bank for its restructuring and ensure that it plays its full role in supporting the recovery of the economy," said Financial Services Secretary Paul Myners. Under the previously announced plan, Northern Rock will be divided into a "good bank," which will take over deposits as well as new lending and higher quality loans, and a "bad bank" that will hold the rest of the loan book and will be gradually wound down.
