Northern Rock sold to Virgin for £747m

Link to the article Channel 4

Northern Rock will be sold to Virgin Money for an initial £747m, at an estimated loss of over £400m to the taxpayer. But the government insists it was the best deal on the table.

Virgin Money deal paves way for own High Street bank

Link to the article: BBC News

Virgin Money has positioned itself for an assault on the UK retail banking market after buying regional bank Church House Trust.

Virgin will pay £12.3m for the bank and invest £37.3m into the business.

Under the Virgin Money brand, the company will use the bank to offer savings and mortgages products.

Analysts say that the deal allows it to control a banking licence and potentially to cherry-pick some sections of Northern Rock in time.

"The Church House Trust business offers us a strong platform for growth," said Virgin group founder Sir Richard Branson.