Northern Rock agreed £800m in high-risk loans after bailout

Nationalised UK bank Northern Rock was allowed to lend £800m (€851.3m) in high-risk mortgages for six months after being placed on life-support with billions from the British taxpayer, the UK's public spending watchdog has said.

The finding came in a damning National Audit Office (NAO) report which said an under-prepared British Treasury failed to properly assess risks, carry out its own due diligence, or challenge over-optimistic business plans after nationalising the lender in February 2008.