Who will buy LLoyds and Northern Rock

Chadsman

As I understand it all C&G branches and associated accounts are part of the business being sold.

Chadsman

From Reuters http://uk.reuters.com/article/2011/10/25/uk-virgin-northernrock-idUKTRE79O63W20111025?rpc=401&feedType=RSS&feedName=businessNews&rpc=401

Virgin makes second round Northern Rock bid

AmTheMan87

As far as I'm aware, all Lloyds TSB Scotland branches are being sold off, and LBG will have BOS north of the border... Cant remember exactly what I was advised in regards to any branches down south though...

Also, as far as I was aware, Virgin is looking at a few options just now but Northern Rock looking more favourable..

Chadsman

here is a list of the branches to be sold...
http://www.guardian.co.uk/news/datablog/2011/jun/08/lloyds-banking-group-selling-sold

Chadsman

The government sells Northern Rock to Virgin Money...
http://www.citywire.co.uk/money/government-sells-northern-rock-good-bank-to-virgin-money/a543149

http://uk.news.yahoo.com/government-sells-northern-rock-virgin-money-091339711.html

http://www.bbc.co.uk/news/business-15769886

gadgetmind

Just so everyone is clear (and even some of our media get confused!) this is the "good bank" that's been sold and NRAM - the bad bank - is still with the government.

And next week I'll be explaining why you need to be careful when buying shares in British Gas.

talexuser

gadgetmind wrote: »

this is the "good bank" that's been sold and NRAM - the bad bank - is still with the government.

A very good point. Trumpeting the sale of the "good" bank for the taxpayer as if that were the end of the story with no mention of write offs of the "bad" bank is something the government should not be getting away with spinning.

gadgetmind

talexuser wrote: »

something the government should not be getting away with spinning.

The whole naming of Northern Rock Asset Management was designed to let them get away with this and also to suggest that massive gobs of dodgy debt was somehow a valuable asset.

talexuser

According to Peston over at BBC the sale of the "good" bank represents a paper loss of between £650million and £400 million for the taxpayer. Goodness knows what it really is with inflation and the rest of the downturn taken into account.

Nobody knows what will eventually happen with the 10s of billions of mortgages of the "bad" bank.

A good news story for the age of austerity? :eek:

mjr

I had a NR fixed rate mortgage (5 years from late 2006), decent amount of equity in the property such that if the bank had to repossess it they'd be guaranteed not to lose money and perfect payment history, and yet still ended up being transferred to NRAM. I've moved providers now the fixed term is over, but it would be unwise to assume all mortgages with NRAM are "dodgy debt."