Asset Management Tips

The loss of around £5bn it incurred in just the last three months of its financial year would have wiped Northern Rock from the face of the planet.

If Northern Rock's loans were in as parlous a state as Citigroup's, there would be no argy bargy about whether it would be right to nationalise the bank or whether shareholders should receive a penny.

The Rock would simply be in liquidation. The game would be well and truly up for shareholders and depositors.

And Citi is not an exception.

In the US, the assets of Merrill Lynch, Morgan Stanley and Bear Stearns have all suffered write-downs that would have been sufficient to topple any medium size British bank.

And in Germany, a number of banks are feeling very acute pain from their exposure to US sub-prime. read more