Northern Rock Nuisance value

Northern Rock’s investors appear to be playing chicken with the UK. In theory, their shares should be worth virtually nothing. The UK mortgage lender depends for its current survival on the government’s £20bn-plus funding lifeline, which is guaranteed only until February. And their prospects beyond that look bleak. The bank has said it has received bids which are materially below where the shares stood on Friday. But even these proposals rely on the state maintaining at least part of its life su...