News article

Northern Rock suffers £585.4m pre-tax loss

Northern Rock suffers £585.4m pre-tax loss
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The ailing bank Northern Rock has reported a pre-tax loss of £585.4 million.

The news comes after it emerged that talks concerning the value of government promises to shore up the bank's retirement scheme are nearing deadlock, according to the Financial Times.

Pension scheme trustees and the bank's board have, so far, failed to reach an agreement over the scheme's deficit.

Sir David Chapman, chairman of the trustees, said the additional funding requirements of the retirement plan would remain unsecured without security over a tranche of assets.

He commented: "It is difficult to see how [a negotiated settlement] will be possible without the active involvement of the pension regulator."

Northern Rock was effectively nationalised by the Treasury after the government promised to protect all deposits made at the mortgage provider, reports the Daily Telegraph.

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