I thought the whole point of Granite was that it was non-recourse to Northern Rock?
The government\’s exposure to losses at Northern Rock could be increasing by the day after a contract breach by one of the lender\’s subsidiaries put other creditors ahead of the taxpayer in the queue for payment.
Granite, the vehicle that packaged some of Northern Rock\’s mortgages to sell them on to other investors in a process known as securitisation, is being forced to pay back holders of about £26bn of debt first.
It ain\’t (or wasn\’t?) a subsidiary. So where am I wrong here?