‘We’d be good for Northern Rock,’ says the Coventry

COVENTRY Building Society says it believes Northern Rock customers would benefit if it were to take over the ‘good bank’ part of the nationalised lender.

Coventry, which with 1.5m members is Britain’s third biggest mutual, was reported to be preparing a bid to acquire Northern Rock plc from the Government.

The Government created Northern Rock plc last year as a viable mortgage and savings bank, while putting the bank’s more toxic loans in a separate entitiy called  Northern Rock Asset Management.

In a statement, the society said: “Coventry Building Society’s commitment to mutuality has helped deliver consistently superior financial performance and member value throughout the financial crisis.

“The board believes that these credentials would benefit Northern Rock customers if it were to be remutualised as part of Coventry Building Society.

“The Government and UK Financial Investments Ltd have yet to confirm the process and timetable for the sale of Northern Rock. When that decision is made the Board will examine the criteria laid down and decide the next steps to take.

“At this stage we cannot rule anything out but emphasise that whatever decision is made will be in the best interests of the society’s members.”