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EU approves Northern Rock rescue, takeover

EU approves Northern Rock rescue, takeover

The European Union has approved the government rescue and nationalization of Northern Rock, the first British lender to fall victim to the global financial crisis.
EU regulators also approve the spinoff from Northern Rock of a "bad bank" which will take on the unwanted assets that would otherwise compromise the surival of the "good bank."
EU Commissioner Neelie Kroes said Wednesday that the restructuring "will allow the bank to become viable in the long term and limit distortions of competition."