On Wednesday, 'Hash' Brown, told a technical truth. In other words, he lied. In the Commons he asserted that Lloyds Bank had not made an offer for Northern Rock, the money-lending business that is situated in Labour's political back garden, the North East. Strictly legally he was correct in that there was no formal offer from an investment Bank or an announcement to the Stock Exchange. However, it is on the record that an approach was made by Lloyds together with Merrill Lynch, and indeed, Lloyds had gone as far as conducting 'due diligence'. This was confirmed by the Bank of England who took the proposal to Alistair Darling because it involved a government guarantee of £30bn. Lloyds were prepared to offer £2 a share - today the price is south of 68p. However, they required the guarantee because the full nature of the shrinking credit market was beginning to be felt and they did not wish their own share price to suffer if they took over Northern Rock. The government flinched from this and so the deal fell through. So, as I say, strictly technically, our prime minister told a truth, but in the real world he lied and has now demonstrated the fact that he is a paid-up member of the lying liars' club. Today the government is in hock to Northern Rock to the tune of $55bn! That is twice the size of our national defence budget. The wretched man is a dunce, a bully and a liar.
I am obliged to Mr. Alex Brummer, City Editor, in today's Mail for the facts.
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