Speaking in the Commons yesterday, the Prime Minister said that the nationalisation of the lender would not only recover the amount lent by the Bank of England but also "make profits."
According to The Times, any returns made by a private company following the successful takeover of the bank would be shared with the government due to its own stake, and therefore filter down to taxpayers.
However David Cameron said that the Prime Minister's behaviour was akin to that of a used-car salesman after Brown sidestepped a question probing into how much the rescue would cost.
These fresh reports come just days after the government revealed plans to wrap up Northern Rock's debt for resale to private investors, subject to approval from the Financial Services Authority (FSA) and European Committee (EC).
