Virgin Money takes over Northern Rock

[slowcoach]

Sir Richard Branson's Virgin Money is to buy nationalised lender Northern Rock in a £747 million deal, the Treasury has announced. LINK

[Alan Fry]

will they also buy the lloyds branches as well?

also what will be the new name of this bank?

[ShaneC]

So, we get back 50% of the money we put into it, great deal

[denphone]

Hopefully this will increase competition in the market with a new major competitor coming into the market and give the treasury some much needed money in the process.

[ShaneC]

Originally Posted by Alan Fry

will they also buy the lloyds branches as well?

also what will be the new name of this bank?

Lloyds TSB took over HBOS not Northern Rock.

Originally Posted by ShaneC

So, we get back 50% of the money we put into it, great deal

It's a good deal if it's worth more than all the other offers on the table. UK plc needs that money right now. There's no point holding on to Northern Rock for another five years in the hope that it might eventually be worth what it cost to rescue it.

Besides, additional payments over the next couple of years will make the deal worth nearer £1 billion, and if Branson sells the thing off within 5 years the Treasury will get a cut of that as well.

[Taf]

The part with toxic debts is still "ours" though.

[ShaneC]

I do agree its the best deal available and we might as well sell it. I guess like all of us we were hoping the markets would pick up and we would at least get our money back.

[slowcoach]

Originally Posted by Taf

The part with toxic debts is still "ours" though.

I don't think you were meant to notice that seeing as how it was tacked on at the bottom of the article, it makes all the figures mentioned totally meaningless as the toxic debt could eventually wipe out everything and more...

Maybe this will help us increase confidence in the government's ability to manage it's debts?

Originally Posted by ShaneC

So, we get back 50% of the money we put into it, great deal

Not a good deal at all methinks except for Virgin Money! Oh and the Taxpayer also gets to keep the toxic (bankrupt) part of the business,as has already been mentioned.

Like Gordon browns Gold sale years ago,i think the government are selling far too early,and should wait until the markets pick up to at least get our money back.

Originally Posted by slowcoach

I don't think you were meant to notice that seeing as how it was tacked on at the bottom of the article, it makes all the figures mentioned totally meaningless as the toxic debt could eventually wipe out everything and more...

The 'article' you linked to was a Virgin press release. Obviously they're not going to want to talk about toxic debt.

Robert Peston at the BBC has blogged about it in a slightly more balanced fashion over here:

http://www.bbc.co.uk/news/business-15770011

Originally Posted by Chris

The 'article' you linked to was a Virgin press release. Obviously they're not going to want to talk about toxic debt.

Robert Peston at the BBC has blogged about it in a slightly more balanced fashion over here:

http://www.bbc.co.uk/news/business-15770011

Good article with the piece tilted towards the fact George Osbourne could be selling at the wrong time,which on balance is my view exactly.

Gordo Browns Gold Sale part 2

Actually if the Eurozone is on the brink of meltdown, getting rid of Northern Rock right now could be a very good thing indeed.

[Alan Fry]

Originally Posted by ShaneC

Lloyds TSB took over HBOS not Northern Rock.

I meant will Virgin Money take over the Lloyds Banking Group Branches that the European Commission forced them to sell in return for a bailout from the government