Taking a short respite from international news of doom and gloom (bond yields in Spain at 7%, Germany and France fall out over role of ECB etc) it has been announced that Virgin will buy Northern Rock plc (the non toxic part of Northern Rock) for around £750M now, with a possible further £280M over the next few years.
Northern Rock plc will be rebranded as Virgin Money, which has promised not to make anyone compulsorily redundant over the next 3 years.
Taxpayers have put around £1.4BN into Northern Rock plc. Hence the loss is between £400M to £650M.
The "bad bank" part of
Northern Rock is estimated to contain losses of up to £21BN.
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