Northern Rock rights issue

Northern Rock’s hedge funds should put their money where their mouths are. SRM Advisers and RAB Capital, the stricken bank’s two biggest shareholders, say the lender shouldn’t sell itself to one of the potential rescuers offering peanuts for their shares. SRM has even told the FT that, if Northern Rock wants more equity, it will provide it through a rights issue. The board should test whether this offer is for real by asking SRM to put together a consortium to underwrite a rights issue. The Roc...