Feeds

UK Treasury flogs Northern Rock to flirty Virgin

Nationalised bank offloaded in £747m cash deal

Providing a secure and efficient Helpdesk

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. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.