Virgin Money takes over Northern Rock

[Chrysalis]

Originally Posted by Mr Angry

Here's an enlightening and informative insight.

That article strikes a few home truths.

It was similiar with virgin media, he is simply getting paid a decent royalty fee for ntl to use the brand name. Whilst most of the public think he owns the company and runs it.

Also the few home truths about how big businesses in britian get a lot of profits from previous state owned services and/or getting government grants/contracts.

[Mr Angry]

Originally Posted by Hugh

True, but comments like

kind of show where his mind-set is...

I don't dispute that.

Originally Posted by Hugh

And then he goes on to rubbish British industry, saying it is all companies bidding for Government contracts and PFI, which he caveats by saying So he is saying if we ignore Royal Dutch Shell, BP, HSBC, GlaxoSmithKline, Vodafone, RBS Group, Barclays, HBOS, Astra Zeneca, Anglo American, Lloyds TSB, Tesco, BAT, Rio Tinto, Diageo, BT, Xstrata, BG, BHP Billiton, Aviva (the top 20 companies in the UK), his premise is valid....

I found his comments re Northern Rock / virgin money and the past business practices of Mr Branson to be valid (and appropriate to the context of this particular thread).

His derisory comments about other British industries, whilst clearly jaundiced, are just that - his opinion - which is entirely "valid" in the context that it is merely an opinion.

No argument here.

I agree with you re past practices, but he contradicts himself (imho), when he states

Yes, the entrepreneur screws up – as with cars, cola, cosmetics and all those other discarded Virgins – but he takes risks.

The more prosaic truth is that the Virgin boss keeps himself in homes in Holland Park and Necker Island by taking taxpayer subsidies and operating heavily protected businesses

So when he takes risks and loses, he "screws up" - when he takes risks and wins , he is "taking taxpayers subsidies and operating heavily protected business".

[TheDaddy]

Originally Posted by Chris

Sorry, but you're simply grasping at party-political straws. State aid of the kind used to save the Rock is illegal under European law. The 'agreement' is a concession to obeying that law, yet you ask if there's any record of the agreement being challenged as if it were an unfair contract term in something trivial like a payday loan.

You agree that politicians deserve some slack if they've been honest, well what about honesty from Her Majesty's loyal opposition? Senior figures in that Party are, and always have been, perfectly well aware that HMG had a deadline to dispose of the Rock, yet they promised the country would get its money back - something that was absolutely impossible to guarantee, given that deadline - and they criticised HMG for disposing of it to Virgin Money, despite being aware that HMG did not have the luxury of sitting on the assets indefinitely until a profit-making deal came up.

Yeah and no other government ever ignores European law and besides why didn't he ask for an extension as suggested in the article.

If he is now suggesting this was a bad deal for the taxpayer and he would rather have waited why did he not ask the European Commission for an extension?

[TheDaddy]

Originally Posted by heero_yuy

It's interesting to read some of the background to this:

Commentary by Prof. Tim Longdon.

In getting an extension to the EU's 6 month state aid limit we had to do a lot of unsavoury things. No doubt any extension that the EU might be convinced to grant would come with even more strings attached, probably in the form of more Brussels meddling in the city.

Unlike the French we're sticklers for playing by the rules. More fool us.

I wonder about us being sticklers for the rules, seems to me that Europe's become an easy way of passing the responsibility buck on when making unpleasent decisions, "Europe made me do it".

SIR Richard Branson was in Newcastle today to meet Northern Rock staff who are now part of his Virgin business empire.
Sir Richard’s Virgin Money took over the bank from the Government on January 1 and was marking the completion of the deal, together with Virgin Money chief executive Jayne-Anne Gadhia.

Read More http://www.chroniclelive.co.uk/north...#ixzz1j0HeQ6Lq


Well we get 740million of our money back

[Osem]

Originally Posted by martyh

Read More http://www.chroniclelive.co.uk/north...#ixzz1j0HeQ6Lq


Well we get 740million of our money back

Yup, it softens the blow just a little.

Good luck to him and his new venture.

[Stephen]

Merged new thread with existing