Northern Rock sold for HALF what they paid for it.

[DerbyGull]

Are the Government nuts??

 

[Colossal Squid]

You mean what WE paid for it

 

[DerbyGull]

Double blow for taxpayers then

 

[Titanic]

I'm sorely tempted to merge this with...

https://nortr3nixy.nimpr.uk/showthread.php?219839-Corruption-in-the-UK-from-top-to-bottom.

 

[Tom Hark Preston Park]

Presumably the Government thought this is as good as gets for Northern Rock for the foreseeable?

 

[Badger]

Couldn't we have just put it on eBay? People will pay anything in the heat of the moment when there are only a few seconds left.

 

[wardy wonder land]

bloody Tories ! - at least Labour sold the gold reserves at an all time low ................oooh !

 

[Triggaaar]

bloody Tories ! - at least Labour sold the gold reserves at an all time low ................oooh !

But the Tories didn't buy it.

 

[Barnham Seagull]

They are all a bunch of twunts!

Read yesterday about the selling of our Harrier aircraft to the US, they can't believe how cheaply they got them.

 

[drew]

But the Tories didn't buy it.

True, they didn't and I believe their policy would have been to let it fail costing many their life savings and several thousand their jobs. Not to mention the knock effect on other banks and confidence in the money markets etc>

 

[seagullsovergrimsby]

We might only lose £400M on the deal because there are add ons to be paid by Virgin Money in the future. In 3 years time there will be a massive cull in the employee headcount as Virgin Money will then be allowed to restructure the business.

 

[Hatterlovesbrighton]

We might only lose £400M on the deal because there are add ons to be paid by Virgin Money in the future. In 3 years time there will be a massive cull in the employee headcount as Virgin Money will then be allowed to restructure the business.

Possibly not. The current VM operation is excatly the opposite of what NR do so there shouldn't be a need for big job losses. This is actually one of the better reasons for selling now as Virgin Money are a willing buyer who will use the actual business. Down the line they might only have had an offer from a company who wanted it for the customers and would merge it with another company and then sack the staff and close the branches.

 

[Since1982]

Its as good a deal as could have been achieved I suspect - a shedload of liabilities that would otherwise have been to the taxpayer have also gone.

 

[CHAPPERS]

Possibly not. The current VM operation is excatly the opposite of what NR do so there shouldn't be a need for big job losses. This is actually one of the better reasons for selling now as Virgin Money are a willing buyer who will use the actual business. Down the line they might only have had an offer from a company who wanted it for the customers and would merge it with another company and then sack the staff and close the branches.

They are setting up their base in the north east are they not?

 

[VeronaSeagull]

If you consider it as a 20% discount Vs the actual value of NR assets it is a good deal for both sides given the major banks are trading at 40%-50% below their asset value.

Peston makes a decent fist of explaining it for once on the BBC site

 

[seagullsovergrimsby]

Possibly not. The current VM operation is excatly the opposite of what NR do so there shouldn't be a need for big job losses. This is actually one of the better reasons for selling now as Virgin Money are a willing buyer who will use the actual business. Down the line they might only have had an offer from a company who wanted it for the customers and would merge it with another company and then sack the staff and close the branches.

The pledge on jobs is for those being merged into VM's current operation (former Northern Rock staff) , after 3 years Virgin Money will be allowed to restructure the business in preparation for a listing on the stock market.

 

[Pot noodles for everyone]

Are the Government nuts??

Have you bothered to do any research before you posted this hyperbole or are you, as I suspect, talking from a position of complete ignorance as to the reasons behind the value placed on NR?

 

[Hatterlovesbrighton]

The pledge on jobs is for those being merged into VM's current operation (former Northern Rock staff) , after 3 years Virgin Money will be allowed to restructure the business in preparation for a listing on the stock market.

But why do you think they will restrucuture if what they are taking on is not surplus to requirements at the moment?

 

[Danny-Boy]

Virgin Money takes on Northern Rock..sounds dirty. Who's got the DVD?

 

[Leekbrookgull]

They are setting up their base in the north east are they not?

Love it if a Sussex company had brought it,the we could call it Brighton Rock !!!!!!!!!!!!!!!!!!!