03/28/2008 02:45 am ET Updated May 25, 2011

Britain To Nationalize Troubled Mortgage Lender Northern Rock

The British government announced Sunday that it would bring Northern Rock, the struggling mortgage lender, under its control. It was the first nationalization of a bank in more than a decade and a huge blow for the government of Prime Minister Gordon Brown.

The government rejected two takeover proposals for the lender, which ran into trouble last year because of a funding shortage that followed the subprime mortgage crisis in the United States. The government was forced to shore up the company with about £55 billion, or $107 billion, in loans and guarantees.

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