Virgin plans to float new bank by 2014
The purchase, which leaves taxpayers facing a £400 million loss, creates a bank with four million customers and accelerates Virgin’s ambitions to take on the big five lenders.
The firm’s Edinburgh-based chief executive Jayne-Anne Gadhia, who will run the enlarged bank, said: “We think we would be ready for a flotation in two years and then it’s all down to the markets.
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Hide Ad“It makes complete sense for us to be able to access capital markets if we are going to be a really significant player.”
Northern Rock has been in public ownership since February 2008, when it was at the centre of the first run on a UK bank in 150 years.
Chancellor George Osborne insisted the price was the best available.