Granite (Northern Rock vehicle)

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Granite is a securitisation vehicle created by the British bank Northern Rock, based in Guernsey. After the liquidity crisis and subsequent Nationalisation of Northern Rock in February 2008 Granite was put into run-off to reduce exposure the British Taxpayer. When Northern Rock was split into a 'good' and a 'bad' bank in January 2010 Granite assets were to be held by the 'bad' bank Northern Rock (Asset Management).


Created in 2001, the purpose of Granite was to parcel up the mortgages provided by the bank and sell the value to investors. In 2008 Granite had a value of around £45 billion.[1]

In 2008 Northern Rock, advised by Credit Suisse, decided to let Granite go into run-off, meaning that Northern Rock the bank would no longer supply it with fresh mortgages and bondholders would be repaid as old mortgages expire.[2]

In plans made public on 8 December 2009 certain wholesale deposits were to be held by the renamed assets company, Northern Rock (Asset Management) plc, on behalf of Granite.[3]

In 2015 UK Financial Investments announced that it will seek expressions of interest for the divestment of Granite. UKFI have appointed Moelis & Company as advisers for the divestment.[4]


  1. ^ Aldrick, Philip; Griffiths, Katherine (2008-02-20). "The state of Northern Rock: anything but usual". London: The Daily Telegraph. Retrieved 2008-02-22. 
  2. ^ "Northern Rock calls it a day on Granite vehicle". The Financial Times. 2008-11-21. Retrieved 2008-11-22. 
  3. ^ "Government guarantee arrangements for Northern Rock plc" (PDF). HM Treasury. 2009-12-08. Retrieved 2009-12-09. 
  4. ^ "Osborne Says U.K. Plans Faster Sale of Lloyds Shares in 2015". Bloomberg. 18 March 2015. Retrieved 4 April 2015. 

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