Northern Rock sold to Virgin Money

[T_i_B]

http://www.bbc.co.uk/news/business-15769886

Northern Rock is being sold to Virgin Money for £747m, the government has announced.

The bank was nationalised in 2008 following its near collapse at the onset of the global credit crunch.

BBC business editor Robert Peston said taxpayers had injected £1.4bn into Northern Rock plc. He added that in addition to the immediate £747m the government will get back following the completion of the sale, there is the potential for the Treasury to receive a further £280m over the next few years.

"So on paper, taxpayers end up with a loss of somewhere between £400m and £650m," said our business editor. The size of the losses contained in the bad bank part of Northern Rock are still uncertain, but could amount to as much as £21bn.

http://www.hm-treasury.gov.uk/press_129_11.htm

[fedsron2us]

1. Strangely at the moment I believe that the 'bad bank'

which is still in government ownership is making rather better profits on its assets than the supposedly 'good bank' which is being flogged off. My money is still on a good part of the banking system being nationalised before the next 2 years are out, particularly if the Eurozone crisis leads to a break up of the single currency. If that did happen along with Britain quitting the EU and massive reductions in defence spending then we might live to see this government implementing a good part of Michael Foot's 1983 Labour Party manifesto which far from being the 'longest suicide note in history' may actually end up being prophetic

http://news.bbc.co.uk/1/hi/magazine/8550425.stm
http://www.labour-party.org.uk/manifestos/1983/1983-labour-manifesto.shtml

[non sociopath skin]

2. This is being presented as a good news story here in the North East ....

.... largely because of the saved jobs.

http://www.journallive.co.uk/north-east-news/todays-news//tm_headline=northern-rock-sold-to-virgin-money-at-a-loss%26method=full%26objectid=29797784%26siteid=61634-name_page.html

Myself, I wouldn't trust the bewhiskered barrow boy as far as I could throw him.

The Skin

[dipsydoodle]

3. At least be happy for now

with the saved jobs which I think I read are protected for 3 years as part of the deal. I'm guessing the relevant staff are pleased.

The "bewhiskered barrow boy" might have more street cred that most other high street banks and be able to expand it further as a result.