EC approves sale of Northern Rock

LONDON, Oct. 28 (UPI) -- The European Commission approved a British government plan to break Northern Rock bank into viable and troubled assets and sell the firm.

The head of the European Commission's anti-trust division, Nellie Kroes, agreed to allow a taxpayer funded injection of capital of $5 billion into the "good" half of the firm, The Times of London reported Wednesday.

As it sells off the "good" half of the company, UK Financial Investments, which oversees the British bank bailout effort, will be charged with raising the best price it can on behalf of taxpayers. On the other hand, the largest five banks in the country will be kept from the bidding in an effort to diversify the financial sector.

The government prefers a sale, but may settle for turning Northern Rock over to its customers as a building society, The Times said.

Over time, the government would sell off the bank's troubled assets.