Northern rock taken over by virgin money pdf

The problems arose from difficulties banks faced over the summer of 2007 in raising funds in the money market. Nationalised bank northern rock sold to virgin money. It has taken on its 1 million savings and mortgage customers and its network of 75. Image caption the northern rock name will remain on the clock at newcastles northumberland street branch. At the time of being bought by virgin the bank had 75 branches that have since been rebranded under the virgin money name. Following the banks bailout in 2008, it will now be taken over by sir richard bransons conglomerate in a step towards returning public sector stakes in banking, to the private. The mortgage book remained in government ownership as northern rock asset management, part of uk asset resolution. The takeover of the newcastlebased bank, which was taken into public ownership in february 2008, is expected to be completed by the end of this year. But proposals to use federal money to ease the pain are getting serious scrutiny in washington. Over the past 10 years these borrowers have paid thousands of pounds more for their mortgages than those at other major lenders. The rocks charitable arm, the northern rock foundation, said it looked forward to working with virgin money.

Northern rock sale to virgin money welcomed in north east. Northern rock is a specialised lender providing funds for residential mortgages, secured commercial lending and personal finance. An ipo of northern rock plc was valued at less than half of the virgin money. Clydesdale bank plc 2020 clydesdale bank plc trading as virgin money. Northern rock workers have hailed sir richard bransons takeover as brilliant news. During the early 2000s the company borrowed substantially to fund mortgages. It demutualised and became northern rock bank in 1997, when it floated on the london stock exchange with the ticker symbol nrk. The former northern rock was taken into temporary public ownership tpo in. The bank has struggled to raise money to finance its lending ever since money markets seized up over the summer. Northern rock sold to richard bransons virgin money. Northern rock plc between 31 december 2009 and 12 october 2012. Taxpayers will be disappointed and angry that so much of the money put into northern rock has been lost, after too many politicians tried to pretend the bailout. We obtain funds from both onshore and offshore personal savings, wholesale money markets, covered bonds and from the securitisation of mortgage assets.

The useful downloads are in adobe acrobat pdf format. Virgin money in 2012, but the new owner has provided only a limited amount. The chancellor, george osbourne has announced the sale of northern rock plc to virgin money, at a loss to the taxpayer. An agreement with hm treasury to buy the entire issued share capital of northern rock plc was signed on 16th november 2011. The move sees the first transfer back of public sector stakes in the banks that were acquired by the government at the height of the credit crunch in 2008. Ukfi confirms completion of northern rock sale to virgin money pdf. The northern rock strategy encompasses efficiency, growth and. On 12 september 2007, northern rock asked the bank of england, as lender of last resort in the united kingdom, for a liquidity support facility due to problems in raising funds in the money market to replace maturing money market borrowings. Press release 1 january 2012 ukfi confirms completion of. Virgin money is pleased to confirm that it has today completed the acquisition of northern rock plc. They are purchasing northern rocks savings bank and mortgage lending business, while the government will retain control of the northern rocks asset management business. Northern rock visited by virgins sir richard branson.

Virgin money is a banking and financial services brand operating in the united kingdom. The treasury will sell nationalised lender northern rock to virgin money, the banking arm of richard bransons virgin group, in a lossmaking deal that starts the. Virgin money, the british financial group backed by richard branson, said on wednesday it had returned to profitability at the end of its fourth quarter and expected to deliver an annual profit in. Essential current account or any account opened with northern rock forms. Thereafter, virgin money considered a number of different strategic alternatives, and launched its first pca, its essential current account eca.

Virgin money will also extend support for the northern rock charitable foundation for a further year. Useful downloads existing customers savings virgin money uk. If you normally make your payment by card over the phone, and your payment is due over this period, you will need to contact us before 8pm on friday 16 july when we will be able to help you to complete your payment. The combined business will operate under the virgin money brand, with the rebranding programme taking place during the course of 2012. Virgin money completes the acquisition of northern rock plc. The savings bank was bought by virgin money in january 2012 and rebranded virgin in october 2012. It was rescued by the bank of england on 14 september 2007 and nationalised on 22 february 2008. Newcastle, where northern rocks headquarters is based, will become the operational hq for virgin money. Virgin money back in profit after northern rock take over. The loan helped to facilitate the sale a spokesman for virgin money said, and would be used to boost its tier. Virgin money is a uk based financial services firm, owned by sir richard bransons the virgin group.

Based at regent centre in newcastle upon tyne, united kingdom, northern rock was originally a building society. This written notice takes effect from 20 december 2019 and ceases to have effect on 1 january 2024. The 75 branches will be retained and, over time, the branch network will be expanded. Northern rock plc was sold to virgin money in 2011 for proceeds currently estimated at. The creation and sale of northern rock plc national. Bransons empire to buy bank owned by britain the new. Completion of the transaction is expected on 1 january 2012.

Should the deal go ahead, the business would be run by jayneanne gadhia, head of virgins financial services business, who has been working with sir richard on developing a mortgage business for him. Ukfi managed the governments 100% shareholding in northern rock plc from northern rock plcs formation on 1 january 2010 and up to its sale to virgin money on 1 january 2012. The government has today announced that it is selling northern rock plc to virgin money, returning the institution to the private sector. Virgin money, owned by sir richard bransons business empire, has bought northern rock. Virgin money on creating great competitor with northern rock. The registered office of the transferee is 30 st vincent place, glasgow, g1 2hl. It also previously owned northern rock until that company was taken over by virgin money on 1 january 2012. But the government insists it was the best deal on the table. The customer would like to transfer from a historical northern rock connections mortgage. Virgin money completed its acquisition of bailed out northern rock on sunday, despite calls for the sale to be delayed while the national auditor. The creation and sale of northern rock plc national audit office. Today virgin money finalised a deal with the british government to acquire the nationalised newcastle upon tynebased bank northern rock. That is the banking and mortgage lending arm of the old. Branson takes northern rock private financial times.

As when abbey was taken over by santander, northern rock customers will receive new virgin money branded passbooks, chequebooks and. Bbc news business virgin pursues northern rock deal. Virgin bought northern rock plc in january 2012 and rebranded the. Northern rock staff hail virgin money takeover chronicle. Browse the independents complete collection of articles and commentary on northern rock. Uk sells northern rock to virgin despite protest reuters. Virgin money has agreed to buy the good part of northern rock from the treasury for around half of what the taxpayer injected into the bank when it split last year. Virgin money to buy northern rock mortgage finance gazette.

Nram to offset the loss on the sale of northern rock plc. Bringing together northern rock plc and virgin money has created a bank with over four million customers that provides, at scale, savings. Virgin money has today agreed to buy northern rock plc from her majestys treasury, subject to regulatory and eu merger approval. To obtain the money, the northern rock will have to deposit some of its customers mortgages as collateral, which are regarded by the bank of england as sound. Amidst the serious economic turmoil of 2009, it was reasonable to create northern rock plc to support mortgage lending. Virgin money completed its rebranding of all northern. The bank was nationalised in 2008 following its near collapse at the onset of the global credit crunch. Virgin added that it would keep the northern rock business intact and retain its links with its charitable arm, the northern rock foundation. Virgin money acquired northern rock plc nr in january 2012, which transformed it from being a comparatively small online bank to having a high street banking presence with 75 branches. Pdf the subprime crisis, the credit squeeze and northern rock.