Brussels, 28/10/2009 (Agence Europe) - On Wednesday 28 October 2009, the European Commission approved a package of measures to support the restructuring of UK mortgage lender Northern Rock. The bank will be split into a 'good' bank that will continue the economic activities of Northern Rock and a 'bad' bank, an asset management company to run down the remaining assets. Following an in-depth investigation launched in April 2008, extended due to substantial amendments to the original plan in May 2009, the Commission concluded that the aid is compatible with the EU rules on state aid (Article 87(3)(b) of the EC Treaty), and with the Commission's Communications on the application of the state aid rules to banks in times of crisis. The Commission is satisfied that the package of measures, including the split, will restore the long-term viability of the 'good' bank and will allow orderly liquidation of the 'bad' bank, without unduly distorting competition. Competition Commissioner Neelie Kroes said "The failure of Northern Rock would have had major detrimental effects on the UK mortgage market and the overall financial stability of the UK economy... Important structural changes, including the split of the bank into two entities and a significant reduction of its market presence will allow the bank to become viable in the long-term and limit distortions of competition.' (O.L. trans fl)