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17/11/2011
Northern Rock Bought By Virgin
Richard Branson's Virgin investment company is to purchase the formerly troubled Northern Rock bank, according to a Government announcement on Thursday.
The bank was one of the first to be bailed out by a western Government in 2008, being nationalised by former Prime Minister Gordon Brown before imminent collapse at the beginning of the global credit crisis.
The government said the bank is being sold to Virgin Money for £747m. The bank is split into two; the Northern Rock plc, and Northern Rock (Asset Management). The latter half was used to take on the bank's bad debt, while Richard Branson's company is purchasing the former.
Virgin said there would be no additional compulsory redundancies for at least three years.
The decision to proceed with a sale was based on advice from UK Financial Investments (UKFI) and their independent advisers.
HM Treasury said the sale would not affect current customers of Northern Rock, who will carry on their banking as usual. They do not need to take any action and can continue to operate their accounts and contact Northern Rock as they do now. There are no changes to their terms and conditions either.
The Chancellor of the Exchequer, the Rt Hon George Osborne MP 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.”
The news comes coincidentally a day after The Guardian's report on Richard Branson's new commitment to taking on ex-offenders.
The report said that billionaire Branson had been suggesting to the managing directors of hundreds of Virgin companies that they take on ex-offenders as new staff and to stop the practice of automatic disqualification from the application process over a criminal record.
Speaking to the Guardian, Mr Branson said: "I think that people at Virgin appreciate the fact that we are an understanding company."
(DW)
The bank was one of the first to be bailed out by a western Government in 2008, being nationalised by former Prime Minister Gordon Brown before imminent collapse at the beginning of the global credit crisis.
The government said the bank is being sold to Virgin Money for £747m. The bank is split into two; the Northern Rock plc, and Northern Rock (Asset Management). The latter half was used to take on the bank's bad debt, while Richard Branson's company is purchasing the former.
Virgin said there would be no additional compulsory redundancies for at least three years.
The decision to proceed with a sale was based on advice from UK Financial Investments (UKFI) and their independent advisers.
HM Treasury said the sale would not affect current customers of Northern Rock, who will carry on their banking as usual. They do not need to take any action and can continue to operate their accounts and contact Northern Rock as they do now. There are no changes to their terms and conditions either.
The Chancellor of the Exchequer, the Rt Hon George Osborne MP 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.”
The news comes coincidentally a day after The Guardian's report on Richard Branson's new commitment to taking on ex-offenders.
The report said that billionaire Branson had been suggesting to the managing directors of hundreds of Virgin companies that they take on ex-offenders as new staff and to stop the practice of automatic disqualification from the application process over a criminal record.
Speaking to the Guardian, Mr Branson said: "I think that people at Virgin appreciate the fact that we are an understanding company."
(DW)
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Northern Ireland WeatherToday:A mostly cloudy start with scattered showers, the showers becoming more isolated and largely confined to the south this morning. Becoming brighter this afternoon, the best of any sunnier spells across northern counties. Northerly winds easing. Maximum temperature 12 °C.Tonight:A dry evening with late sunny spells and some long clear spells overnight. Becoming cloudier across the north towards dawn with a few showers possible. Touch of frost in south. Minimum temperature 0 °C.
