LONDON - the British Government sold Mortgage Bank Northern Rock, the country's first victim of the credit crisis, with Richard Branson's Virgin Money.
Virgin Money, is part of the larger Virgin Group and is paying 747 million pounds ($ 1.2 billion), but there are provisions for the Government up to 1 billion pounds in total get the Finance Ministry said Thursday. Virgin Money has promised that it will not laying from each more employees and preserves the full branch network for at least three years.
"It was clear for us was that we were the best deal for the British taxpayer, always more money than any other deal back on the table," said Treasury Chief George Osborne.
He said that the sale would increase also competition in British banking sector, which is dominated by four major banks.
The deal drew criticism, but because the price was less than ? 1.4 billion that taxpayers had invested in the Bank.
"I am very concerned about whether we get really good value for the taxpayer", mark field, a legislator in the conservative party, said the Osborne is party.
Also, "serious questions about the much done today at Northern Rock sell it Ed Miliband, who said leaders of the opposition labour party, and in particular about the losses for which taxpayers are made."
Northern Rock funding crisis at the end 2007 were images of desperate depositors schockierende UK snake, to withdraw their money from the company. The previous Government nationalized the Bank in February 2008 in the face of opposition by Osborne and guarantees the safety of savings deposits.
The sale includes 75 branches and 2,100 employees, 1 million customers, retail deposits of ? 16 billion and a mortgage book of ? 14 billion.
Virgin Money was founded in 1995 and has around three million customers. The purchase of Northern Rock by a consortium led by Virgin Group and w.l. Ross & co., finance specialist for the turn.
"Banking in the United Kingdom needs some fresh ideas and an injection of new competition," Branson said. "I am glad we get the chance, with the loyal employees of the Northern Rock, create you a new force in the market to work."
Before the Bank was nationalised, Virgin Money made to accept an offer in the year 2008, Northern Rock, but the then Government rejected it as too risky and too expensive.
The sale contains provisions for an additional ? 50 million cash to the Government six months after completion, will be paid and up to 230 million pounds is a profitable IPO or sale period of five years.
The Government last year divided Northern Rock into two companies: Northern Rock PLC, Virgin Money buys, and Northern Rock PLC holds a portfolio of the most risky loan (asset management).
The Government is planning, advanced by the Treasury, the asset management unit in the course of time to repay wind 50 billion pounds.
Northern Rock was only a small part of the amounts paid by Government, to save the banking sector on the brink of collapse. Taxpayers keep 83 percent of the Royal Bank of Scotland and about 40 percent of the Lloyds banking group.
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