Feeds

UK Treasury flogs Northern Rock to flirty Virgin

Nationalised bank offloaded in £747m cash deal

Gartner critical capabilities for enterprise endpoint backup

Northern Rock was a major victim of 2008's credit crunch - but it survived with help from the then Labour government, which nationalised the Newcastle-based money outfit. Now the Tory-LibDem coalition is shoving it back into the corporate world.

Step forward bearded biz baron Sir Richard Branson, whose Virgin Money company has agreed a cash deal of £747m to take Northern Rock away from the command of taxpayers the Treasury.

"The sale of Northern Rock to Virgin Money is an important first step in getting the British taxpayer out of the business of owning banks," thundered thin-lipped Chancellor of Exchequer George Osborne.

"It represents value for money, will increase choice on the high street for customers, and safeguards jobs in the North East,” he added.

As part of the agreement, Virgin Money is not expected to make any compulsory redundancies for three years beyond the sackings already announced by Northern Rock. The deal also means Virgin Money will plonk its HQ in Newcastle.

As for the £50bn owed to taxpayers, who bailed out Northern Rock, the government assures us that the debt will continue to be repaid: this financial chicanery will be managed by the rather blandly named UK Asset Resolution Ltd. On top of the £747m deal, at least an extra £250m is promised to the government once the sale is done and dusted.

Terms and conditions for existing customers of the bank will remain the same, the government added.

In October 2007, Branson's Virgin Group was in talks to purchase Northern Rock after it was bailed out by the Bank of England. But that bid never materialised into a buyout. Instead Northern Rock was nationalised.

The Bank of England Governor Mervyn King blamed the 2008 Northern Rock crisis, which prompted the first cash run on a UK bank for more than 140 years, on then-chancellor Alistair Darling for failing to support a takeover bid. ®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
'Stop dissing Google or quit': OK, I quit, says Code Club co-founder
And now a message from our sponsors: 'STFU or else'
Ex US cybersecurity czar guilty in child sex abuse website case
Health and Human Services IT security chief headed online to share vile images
Don't even THINK about copyright violation, says Indian state
Pre-emptive arrest for pirates in Karnataka
The police are WRONG: Watching YouTube videos is NOT illegal
And our man Corfield is pretty bloody cross about it
Felony charges? Harsh! Alleged Anon hackers plead guilty to misdemeanours
US judge questions harsh sentence sought by prosecutors
Oz biz regulator discovers shared servers in EPIC FACEPALM
'Not aware' that one IP can hold more than one Website
Apple tried to get a ban on Galaxy, judge said: NO, NO, NO
Judge Koh refuses Samsung ban for the third time
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.