INSTANT VIEW: Reaction to Northern Rock nationalization

LONDON (Reuters) - The following politicians and bank industry figures reacted to news on Sunday that Britain's government is going to nationalize Northern Rock NRK.L.

GEORGE OSBORNE, CONSERVATIVE SHADOW CHANCELLOR:

"This is the day when Labour's reputation for economic competence died. Gordon Brown has dithered his way to the disaster of nationalization.

"Now the taxpayer will bear the full risk of lending 100 billion pounds of mortgages in an uncertain housing market. We will not back nationalization."

VINCE CABLE, LIBERAL DEMOCRAT SHADOW CHANCELLOR:

"Belatedly the government has made the right decision.

"The first priority must be to work out the seriousness of the problems at the bank with an independent audit of its loan book.

"There will be difficult times ahead, especially for the employees, as the bank is downsized. However, there is now hope for the long-term future of the bank when it is eventually sold in more satisfactory conditions."

MERVYN DAVIES, CHAIRMAN OF UK-LISTED BANK STANDARD CHARTERED

(STAN.L):

"It's been a well publicized problem but I think in the end it's the right solution.

"I think the government had choices here and at the end of the day it is trying to safeguard taxpayers' money."

On Ron Sandler: "He's a very accomplished individual and will go through the portfolio and tackle it in the professional way he has done in the past."

ANGELA KNIGHT, CHIEF EXECUTIVE OF BRITISH BANKERS'

ASSOCIATION:

"I hope it's nationalization with a purpose and what we will need to see over a fairly short period of time is a plan of how to run the bank for the time being and also a plan for its future."