Banking News South Africa

Virgin buys Northern Rock

Fin24 reports that multinational banking group Virgin Money has managed to buy Northern Rock - the nationalised bank that was rescued by the British government.

Although the exact value of the transaction has not been disclosed it was estimated to be between £747-million and £1-billion. Calls for the national auditor to investigate the deal prior to its finalisation were apparently ignored.

The deal will not recoup the £1,4-billion spent by the government to keep the bank afloat over the past three years. Northern Rock was the first victim of a run on a British Bank in recent times.

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