The news today reports that Northern Rock has chosen a suitable suitor to rescue it from its financial hole. The group of financial backers led by Richard Branson and his Virgin Group have been declared the ‘chosen ones’.
The Treasury have backed the offer which includes repaying £11 billion back to the Bank of England (BOE), for its loan to help out Northern Rock since they encountered problems in September this year, injecting a further £1.3 billion into the bank and also repaying the remainder of their BOE loan over the next 3 years (which would stand at £14 billion).
The only thing stopping it happening now is if the banks shareholders reject the deal. This could mean the bank goes into administration or even becomes nationalised. If Virgin does get the go-ahead then Northern Rock would be rebranded under the Virgin Money name to reflect the new ‘owners’.
There are no plans to move where Northern Rock is based or lose any staff from the changeover. Whatever the outcome is, existing customers still using Northern Rock have been assured their money is protected.
Read more at the BBC news website
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