Reports say Gordon Brown will hold his monthly press conference tomorrow morning "to get his retaliation in first".

Vince Cable says "It comes after far too long, but it's the right thing to do". The Telegraph reports that a senior Labour minister said "Vince Cable has given Liberal Democrat economic policy a slither of credibility". Wish we had gone more willingly down this route - wonder how much the delay has cost.

The Treasury press release says Government will not be required to compensate shareholders for value which is dependent on taxpayers' support.

Update: Alistair Darling had a tough interview on Today. Sounds like Northern Rock is going to contract a lot under new management- "refocused ... good quaility mortgage book that could be built upon". BBC Robert Peston says insiders see at least 3 years nationalised, and morgage rates pushed up to lose the business Nortern Rock foolishly expanded into - so quite possibly driving some mortgagers into repossesion.

Key points from Alistair Darling's statement are:

• The bank will be run at arm's length and on a commercial basis. I will appoint Ron Sandler as Executive Chair to run the bank. I will also appoint Ann Godbehere, former Financial Officer at Swiss Re, as Chief Financial Officer.
• The Financial Services Authority continue to assure me the bank is solvent. It believes that Northern Rock's mortgage book is of good quality. And the FSA will also continue to regulate the Northern Rock.
• $100bn have been written off the books of financial institutions globally since the summer ... last week the German government announced a further one billion euros of support to IKB.
• Both proposals (Virgin Consortium and Northern Rock management) involve a degree of risk for taxpayers and very significant implicit subsidy from the Treasury, involving a payment below the market rate to the Government for continuation of its guarantee arrangements and for the financing we would be putting in place.
• A subsidy on the scale required would not in the Government's judgement provide best value for money for the taxpayer, in circumstances where the private sector rather than the taxpayer would secure the vast majority of the value created over the period ahead. This would be a poor reflection of the balance of risk borne by the two sides.
• By contrast, under public ownership the Government will secure the entire proceeds from the future sale of the business in return for bearing the risks in this period of market uncertainty.
• it is my clear assessment that under the approach we are taking the taxpayer will see its outstanding loans to Northern Rock repaid in full, with interest - and that the business can be returned to the private sector as financial markets stabilise.
• Tomorrow, before the markets open, it is expected that the UK Listing Authorities will announce that the company's shares will be suspended from listing tomorrow prior to the opening of the London Stock Exchange.
• Tomorrow, I am also publishing a Bill to bring the bank into a period of temporary public ownership. ... will enable the Government to acquire the bank's shares and its assets. It will provide for compensation to be determined by an independent valuer. It will allow for the running of the bank and for the eventual transfer back into the private sector as soon as it is right to do so. Because public ownership is a temporary arrangement.
• The Bill gives the Government a general power to acquire the shares in, or assets and liabilities, of institutions. We have deliberately drafted the Bill to ensure that a bank can only be acquired in certain tightly defined circumstances. And that power will only last for twelve months.
• I've already announced a consultation which will lead to permanent legislation to deal with situations like this in the future.
• proposals will also cover the Northern Rock Foundation, where he will commit to guaranteeing a minimum income of £15m per year in 2008, 2009 and 2010. This will be paid directly by Northern Rock, and would be a condition of any sale if it were sold in this time.
• The new Board and the company will operate at arm's length from the Government, with complete commercial autonomy for their decisions ... all operational decisions will be made by the Board with no interference from the Government.
• It is our expectation that the company can be moved into the private sector at the earliest and most prudent opportunity.
• At every stage the stability of the economy and the interests of depositors and taxpayers have been - and remain - our first concern.

Meanwhile on another planet "City defends bonuses to Alistair Darling".

However the Treasury press release says Ron Sandler will receive £90,000 per month, and new CFO Ann Godbehere will be paid £75,000 per month - no additional incentives will be discussed until the new board has discussed its business strategy with the Government.