Three banks offer to securitise Northern Rock loan

Royal Bank of Scotland, Barclays and Citigroup have offered to securitise half of the Bank of England's emergency loan to Northern Rock, according to The Sunday Telegraph.

The three banks approached the Treasury in the past few days offering to securitise £12.5 billion of Northern Rock mortgage assets in the markets, the newspaper said. The newspaper reported that would-be buyer of Northern Rock, Richard Branson, was facing a setback to his plans, as investors Legal & General and Schroders were backing the bank's "self rescue" plan.