Historically the Labour party has favoured the nationalisation of the banks, and with Northern Rock they have now achieved that objective.

The FT published yesterday an investment memorandum obtained by the FTs’ Alphaville blog (since injuncted* by a High Court Judge).

The document revealed that even if the bank was sold, the Bank of England would have to provide support to Northern Rock until 2010 when the stricken lender could still be in hock to the tune of £6bn.

This memo reveals that Northern Rock will owe £24bn to the Bank of England by the end of the year. It has effectively been nationalised without a vote held.

*The injuncted memo is online if you really want to read it in its entirety. Hosted in the U.S. tut, tut, tut.