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| Version 3 | Version 4 |
|---|---|
| Northern Rock sold to Virgin Money | Northern Rock sold to Virgin Money |
| (40 minutes later) | |
| Northern Rock is being sold to Virgin Money for £747m, the government has announced. | 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. | The bank was nationalised in 2008 following its near collapse at the onset of the global credit crunch. |
| The government subsequently split the bank into two, Northern Rock plc, and Northern Rock (Asset Management), into which was placed its bad debt. | The government subsequently split the bank into two, Northern Rock plc, and Northern Rock (Asset Management), into which was placed its bad debt. |
| Northern Rock plc will be rebranded as Virgin Money, which has pledged no compulsory job cuts for three years. | Northern Rock plc will be rebranded as Virgin Money, which has pledged no compulsory job cuts for three years. |
| The bank currently employs 2,500 people, down from 5,500 when it was nationalised. | The bank currently employs 2,500 people, down from 5,500 when it was nationalised. |
| Sources at Northern Rock told the BBC that there were cheers at the bank's Newcastle headquarters when the news of the Virgin Money deal was announced. | Sources at Northern Rock told the BBC that there were cheers at the bank's Newcastle headquarters when the news of the Virgin Money deal was announced. |
| Taxpayer loss | Taxpayer loss |
| The government said Northern Rock customers would see no change to their accounts and services and would not need to take any action. | The government said Northern Rock customers would see no change to their accounts and services and would not need to take any action. |
| BBC business editor Robert Peston said taxpayers had injected £1.4bn into Northern Rock plc. | 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. | 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. | "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. | 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. |
| 'Safeguards jobs' | 'Safeguards jobs' |
| Chancellor George Osborne said: "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. | Chancellor George Osborne said: "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. |
| "It represents value for money, will increase choice on the High Street for customers, and safeguards jobs in the North East." | "It represents value for money, will increase choice on the High Street for customers, and safeguards jobs in the North East." |
| The sale of Northern Rock plc is expected to be completed on 1 January 2012. | The sale of Northern Rock plc is expected to be completed on 1 January 2012. |
| The government said it had no plans to sell Northern Rock (Asset Management). | The government said it had no plans to sell Northern Rock (Asset Management). |
| Virgin Money has pledged to establish a new headquarters in Newcastle, where Northern Rock is based. | Virgin Money has pledged to establish a new headquarters in Newcastle, where Northern Rock is based. |
| It also also agreed not to close any branches and instead to increase their number "as the business' growth allows", and support Northern Rock's charitable foundation for a year. | It also also agreed not to close any branches and instead to increase their number "as the business' growth allows", and support Northern Rock's charitable foundation for a year. |
| In addition to paying £747m on completion of the sale, the government said Virgin Money was "expected" to pay an additional £50m within six months, and then a further £150m. | In addition to paying £747m on completion of the sale, the government said Virgin Money was "expected" to pay an additional £50m within six months, and then a further £150m. |
| If Virgin Money sells or lists the combined business on the stock exchange in the next five years, it will have to pay the government an additional £50m to £80m. | |
| Virgin Money chairman David Clementi confirmed that a flotation was the bank's ultimate intention. | |
| 'Right time' | 'Right time' |
| Ron Sandler, Northern Rock executive chairman, said: "The return of Northern Rock to the private sector has always been one of our key objectives. | Ron Sandler, Northern Rock executive chairman, said: "The return of Northern Rock to the private sector has always been one of our key objectives. |
| "We said that this would be done at the right time and when there was a proposition in the best interests of taxpayers and other stakeholders. | "We said that this would be done at the right time and when there was a proposition in the best interests of taxpayers and other stakeholders. |
| "It is a very positive outcome for the company following a significant restructuring process." | "It is a very positive outcome for the company following a significant restructuring process." |
| The Unite trade union said it hoped the announcement of the sale to Virgin Money "will be the start of a secure future" for Northern Rock's workforce. | The Unite trade union said it hoped the announcement of the sale to Virgin Money "will be the start of a secure future" for Northern Rock's workforce. |
| The leader of Newcastle City Council, Nick Forbes, said it was "delighted that the future of Northern Rock has now been decided". | The leader of Newcastle City Council, Nick Forbes, said it was "delighted that the future of Northern Rock has now been decided". |
| "The decision by Virgin Money to make Newcastle their home sends a message of confidence in our city and the wider North East," he said. | "The decision by Virgin Money to make Newcastle their home sends a message of confidence in our city and the wider North East," he said. |
| A savings and mortgage bank, Northern Rock currently has more than 70 branches. | A savings and mortgage bank, Northern Rock currently has more than 70 branches. |
| The bank was formed in 1997 when the former Northern Rock Building Society floated on the London Stock Exchange. | The bank was formed in 1997 when the former Northern Rock Building Society floated on the London Stock Exchange. |
| It was delisted following its nationalisation. | It was delisted following its nationalisation. |
| Virgin Money had approached the Treasury about making a bid for Northern Rock back in 2008, but it was rejected. | |
| Virgin Money is part of Sir Richard Branson's Virgin Group. |