Read the resolutions for today's EGM in full

Northern Rock: the story so far

Government contingency plans to nationalise Northern Rock would pass through Parliament despite Conservative opposition to the way ministers have dealt with the crisis, Tory sources indicated last night.

The Times has learnt that Conservative MPs will not use parliamentary devices or tactics to block a nationalisation Bill if it comes.

BACKGROUND

• Goldman Sachs steps into Northern Rock crisis

• ‘We did not let down our investors’ says chairman

• Northern is not just a bank, it’s our bank

• Northern Rock still lending ‘recklessly’

• Star investor stays bullish on banks

Man who stepped into limelight on a dark day

Alistair Darling, the Cabinet stalwart who shunned headlines, has become the Chancellor facing down a grave economic crisis

• Narrow Squeak

Brown points way to election fight

In an exclusive interview, the PM explains why ‘intensifying’ health service reforms will be the cornerstone of his appeal

• The most damaging run has been on our trust in you, prime minister

• Full transcript: Gordon Brown interview

• The Trivial Pursuit question Gordon is wary of asking voters

Related Internet Links

• Northern Rock company information

• Northern Rock share price charts

• Northern Rock company forecasts

Related Links

• Northern Rock: the story so far

• Northern Rock EGM: the resolutions

• Nationalisation looms for Northern Rock

Multimedia

• Red box blog: Tory links to the Rock hedge funds

The Tories will protest at the way the Government has handled the bank’s near-collapse but senior party figures accept that the Government would have a majority for a Bill because the Liberal Democrats have called for nationalisation and Labour left-wing rebels would happily support such a move. Conservatives sources say that in those circumstances the Opposition would not use parliamentary devices to try to frustrate the passage of the Bill.

Shareholders in the stricken bank will meet in Newcastle today to vote on key proposals that could block a private sector sale of the bank, which has a £24 billion debt to the Bank of England.

As the two leading bidders for the bank, the Olivant consortium and the Virgin Group, struggle to finalise funding for the deal, speculation grew yesterday that the Government was preparing to take control of Northern Rock.

Northern Rock’s share price fell almost 5.5 per cent yesterday on fears that nationalisation would render the stock valueless, after the Government reiterated that it would protect taxpayers at the expense of shareholders’ interests if necessary.

Thousands of retail investors will convene today at the 10,000-capacity Metro Radio Arena to vote at Northern Rock’s extraordinary general meeting. The meeting was called by the bank’s two largest shareholders, RAB Capital, the hedge fund managers, and SRM Global, which have put forward proposals that, if voted through, would prevent Northern Rock’s board from selling the bank without the permission of investors.

Alex Potter, an analyst at Collins Stewart, described the funds’ proposals as a game of brinkmanship.

A source close to the bank said that the Government was using the threat of nationalisation to put pressure on shareholders to vote against the funds’ proposals. “They don’t want nationalisation at all,” he said. “They want to be free to sell to the private sector without shareholders breathing down their neck.”

Bidders for Northern Rock would need to borrow about £15 billion from a number of investment banks. But the banks are thought to be reluctant to finalise the loan arrangements until the Government provides further information on how quickly the Rock’s Bank of England loan must be paid off.

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