Beith "extremely concerned" over Northern Rock's off balance sheet transactions

4.00.00pm GMT Mon 3rd Dec 2007

Berwick's MP Alan Beith has expressed serious concerns over off balance sheet transactions carried out by Northern Rock.

Mr Beith was speaking after reports that three-quarters of the assets of Northern Rock are owned by Granite, a Jersey-based offshore trust, which used the name of a north east charity for children with Down's Syndrome as its chief beneficiary - although the charity claims it knew nothing about the existence of the trust.

Mr Beith said

"I am extremely concerned, and the more I learn about things that have happened at Northern Rock, the greater those concerns become. It appears very questionable to use the name of a respected local charity to further the purposes of Northern Rock's off balance sheet transactions without any benefit to families affected by Down's Syndrome."

Mr Beith welcomed the news that the Charity Commission is to investigate this situation.

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Mr Beith refers to an article published by The Guardian on 28 November 2007, "A twisty trail: from Northern Rock to Jersey to a tiny charity", available online at http://www.guardian.co.uk/business/2007/nov/28/northernrock.subprimecrisis