Commenting on news that Northern Rock's small shareholders have defeated all but one of RAB Capital and SRM Global's proposals to restrict the board of northern Rock's ability to sell the bank, Liberal Democrat Shadow Chancellor, Vince Cable said:  

"Luckily the small shareholders have seen through the attempts of these predatory hedge funds to sure up their own position at the expense of the bank's future.

"If these proposals had been passed, any chance of a private sale, however remote, would have virtually disappeared.

"This meeting highlights the clear division of interest between speculative hedge funds and small shareholders who have already seen the majority of their share value wiped out.

"However, today's decision changes very little in reality. We are getting ever closer to the March deadline and it is looking increasingly unlikely that any private bidder will be able to either raise the necessary capital or guarantee the repayment of taxpayer loans.  

"This leaves two choices. Firstly, administration where it is likely all jobs in the bank would be lost with no guarantee that taxpayers would get back the £26bn currently owed. This appears to be the option favoured by the Conservative party.

"Alternatively, Northern Rock could be temporarily nationalised in order to guarantee the repayment of taxpayer loans. This would at least give the employees of Northern Rock a fighting chance of keeping their jobs."