Shares in Northern Rock were suspended this morning after the Government unveiled plans to nationalise the troubled bank.

Two private sector proposals have been rejected by the Government. Chancellor Alistair Darling decided the proposals didn't provide adequate protection for the taxpayer whose money is being used to provide emergency funding.

The bank will be put under a 'period of temporary public ownership', Darling said. The bank would be transferred back into the private sector 'when it's right to do so', he said, declining to be drawn on when that may occur.

The government rejected two private sector bids by Richard Branson's Virgin consortium and an in-house proposal from Northern Rock's management team. Shares were suspended at 90p.