US investment bank Goldman Sachs is advising the UK Treasury on some matters relating to troubled mortgage lender Northern Rock.
'Goldman Sachs are advising HMT on some of the mechanics of the guarantee, should it be required,' a Treasury source told Reuters.
Last week, Britain's Finance Minister Alistair Darling pledged all existing deposits at Northern Rock would be guaranteed in full.
The guarantee came after Northern Rock sought emergency funding from the Bank of England, thus leading to a wave of panicked investors queuing to withdraw their savings.
Shares in Northern Rock dived in London as the prospects of it being taken over have diminished. The stock was down 2.73% at 168.7p this morning.
