Northern Rock sale to Virgin Money leaves taxpayer with £400m bill
Chancellor says £750m sale to Sir Richard Branson's empire represents value for money, but critics angered by low return
The acquisition includes 75 branches and 2,100 staff, one million customers, a £14bn mortgage book and savings deposits worth £16bn. Virgin Money, which was founded in 1995, has around three million customers.
Hopes were high last year that a sale would generate £2bn for the taxpayer, but a drop in property prices has pushed down the bank's asset value to £1.2bn.
George Osborne was criticised for locking the taxpayer into a loss of at least £400m on Northern Rock after he agreed the sale of the bank to Sir Richard Branson's Virgin empire for £750m.
FullStory: The Guardian
Chancellor says £750m sale to Sir Richard Branson's empire represents value for money, but critics angered by low return
The acquisition includes 75 branches and 2,100 staff, one million customers, a £14bn mortgage book and savings deposits worth £16bn. Virgin Money, which was founded in 1995, has around three million customers.
Hopes were high last year that a sale would generate £2bn for the taxpayer, but a drop in property prices has pushed down the bank's asset value to £1.2bn.
George Osborne was criticised for locking the taxpayer into a loss of at least £400m on Northern Rock after he agreed the sale of the bank to Sir Richard Branson's Virgin empire for £750m.
FullStory: The Guardian
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