Northern Rock Crisis Forces British Government To Reconsider Banking Laws

After the financial credit crisis that has dragged Northern Rock near bankruptcy, the British government is considering changing its banking laws so that things like this does not happen again.

This comes after Mervyn King, the governor of the Bank of England, said the UK’s strict financial laws made it very difficult for him (and the Bank of England) to deal with the financial crisis that almost crushed the mortgage lender, Northern Rock.

The British Alistair Darling is expected to make an announcement on possible new banking legislation when the British Parliament resumes.

Do you think the government should be intervening in this situation?

Market analyst Sam Kirtley of The Gold Prices Newsletter thinks they should not: “Northern Rock is a private company, a business and this a capitalist system therefore if Northern Rock are going to go bankrupt, then they should go bankrupt. The government should not being intervening in this situation. This financial crisis is far from over and we see a major recession coming in the USA and worldwide. Investors can protect themselves from this buy investing in gold and gold stocks as documented in our free newsletter.”

Do you think the government and Bank of England should be intervening with Northern Rock?

Or should Northern Rock be left to go bankrupt?

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