Tag: Northern Rock News

Taxpayers to make £11bn profit from Northern Rock

Taxpayers to make £11bn profit from Northern Rock

The government’s purchase of Northern Rock in February 2008 and its recent sale of the bank to Virgin Money, is expected to result in a net profit of up to £11bn for UK taxpayers. According to UK Financial Investments Ltd (UKFI) which manages the Government’s stakes in banks bailed out by the state during the […]

February 28, 2012 More
NBNK considering bid for Clydesdale Bank

NBNK considering bid for Clydesdale Bank

New bank NBNK is believed to be considering a bid for Clydesdale and Yorkshire banks after it was announced that the two banks will undergo a strategic review. The review, by parent company National Australia Bank, could lead to Clydesdale and Yorkshire banks being sold or floated on the stock market. NBNK has not confirmed […]

February 13, 2012 More
Virgin Money introduces charge for current accounts

Virgin Money introduces charge for current accounts

Virgin Money, the new owner of Northern Rock, is to begin charging all new customers for current accounts, even if the account remains in credit. Virgin Money’s chief executive Jayne-Anne Gadhia “Most people know there is no such thing as free banking. “Banks have to cover the cost of free current accounts with hidden charges […]

January 6, 2012 More
Government sells Northern Rock to Virgin Money

Government sells Northern Rock to Virgin Money

The government has announced the sale of Northern Rock to Virgin Money for £747m, representing a loss of £650m on the £1.4bn of public money it injected into the Newcastle-based bank. The chancellor, George Osborne said that the deal was “an important first step in getting the taxpayer out of the business of owning banks”. […]

November 17, 2011 More
Northern Rock losses narrow

Northern Rock losses narrow

Nationalised lender Northern Rock Plc has today unveiled its results for the half-year. The crisis-torn bank, which was the first victim of the credit crunch, said pre-tax profits for the six months to 30 June totalled £68.5 million, against a loss of £142.6 million in the same period a year ago. However, lending was lower […]

August 3, 2011 More
Chancellor to show support for retail banks to be ring-fenced

Chancellor to show support for retail banks to be ring-fenced

In his Mansion House speech this evening, Chancellor George Osborne is expected to confirm that banks will have to ring-fence their retail operations so they are protected from losses from investment banking. The Chancellor is also expected to suggest that banks will have to hold more capital – a recommendation of the Independent Commission on […]

June 15, 2011 More
Northern Rock to axe 680 jobs

Northern Rock to axe 680 jobs

Crisis-torn Northern Rock has today announced it will reduce headcount by a further 680 as part of another restructure. According to the lender, which was nationalised in February 2008, the job losses are necessary as part of a cost-cutting exercise and would affect employees “at all grades across the company”. Less than 2,000 people will […]

March 28, 2011 More
Northern Rock reports £232m loss

Northern Rock reports £232m loss

Crisis-torn Northern Rock has today unveiled an underlying loss of £232.4 million for the 2010 year for its so-called “good“ bank. Despite the loss, the Newcastle-based bank will pay more than £13 million in bonuses to its 4,000-strong workforce. The bonus comes despite executive chairman Ron Sandler describing the losses as “disappointing”. He comments: “2010 […]

March 9, 2011 More
Compensation for savers increases from £50,000 to £85,000

Compensation for savers increases from £50,000 to £85,000

The Financial Services Compensation Scheme (FSCS), the body established to compensate victims of banking failures, will now reimburse up to £85,000 per saver if a bank collapses, up from the £50,000 limit previously agreed. It is hoped the new limit, which is paid for by the UK financial services industry, will avert customer panic if […]

January 2, 2011 More
FSA fines Rock’s former finance director

FSA fines Rock’s former finance director

The Financial Services Authority (FSA) has fined David Jones, Northern Rock’s former finance director, for the misreporting of mortgage arrears at the bank. The Watchdog has fined Mr Jones £320,000 and banned him from performing any function in relation to any regulated activity. The fine comes after former deputy chief executive, David Baker, and former […]

July 27, 2010 More
Turnaround plan sees further 650 jobs go at Northern Rock

Turnaround plan sees further 650 jobs go at Northern Rock

Nationalised Northern Rock has announced it will axe a further 650 jobs by the end of the year as it prepares to return to the private sector. The reduction in headcount is part of the bank’s radical turnaround plan and comes just one week after it said it is to close its banking operation in […]

June 9, 2010 More
Northern Rock’s Guernsey operation to close in September

Northern Rock’s Guernsey operation to close in September

Nationalised Northern Rock has today announced it is to close its banking operation in Guernsey on 2 September. The closure of Guernsey‘s activities, which come after a review of offshore operations, is the latest step in the bank’s turnaround plan. Its Guernsey operation was launched in February 1996 and it currently has some 6,000 customers, […]

June 2, 2010 More
Northern Rock savers lose 100% guarantee

Northern Rock savers lose 100% guarantee

Savers with Northern Rock have today lost the 100% guarantee on their cash. The move, which was announced back in February, means the crisis-torn bank is back in line with its rivals but savers will still benefit from the £50,000 guarantee to all savers under the Financial Services Compensation Scheme (FSCS). The 100% guarantee was […]

May 24, 2010 More
Rescued lenders fail to impress mortgage borrowers

Rescued lenders fail to impress mortgage borrowers

Mortgage customers with two of the UK’s rescued banks are less than happy with the service they receive, according to new research from Which? Money. The 41% state-owned Lloyds Banking Group has the furthest to go: only 41% of Bank of Scotland borrowers surveyed expressed satisfaction, while the group’s Halifax unit impressed 44% of home […]

April 28, 2010 More
Former Northern Rock directors fined and banned

Former Northern Rock directors fined and banned

Two former directors of crisis-torn Northern Rock have been fined and banned by the Financial Services Authority (FSA). Former deputy chief executive, David Baker, has been fined more than half a million pounds by the FSA for misreporting mortgage arrears data and banned from working for an FSA-regulated firm. Furthermore, ex-credit director, Richard Barclay, has […]

April 13, 2010 More
‘Bad banks’ of Rock and B&B to merge

‘Bad banks’ of Rock and B&B to merge

It has been announced today the ‘bad banks‘ of Northern Rock (NRAM) and Bradford and Bingley (B&B) are set to merge. The move is designed to cut costs and bring greater returns for the taxpayer. The UK Financial Investments (UKFI), the body which was set up at the height of the financial crisis to oversee […]

March 24, 2010 More
Northern Rock savers to lose 100% guarantee

Northern Rock savers to lose 100% guarantee

The Treasury has today announced savers with Northern Rock will lose the Government’s 100% guarantee on 24 May. The move means the crisis-torn bank is back in line with its rivals but savers will still benefit from the £50,000 guarantee to all savers under the Financial Services Compensation Scheme (FSCS). The 100% guarantee was put […]

February 24, 2010 More
Newcastle Utd signs 4-year deal with Northern Rock

Newcastle Utd signs 4-year deal with Northern Rock

Northern Rock, which was recently split into two divisions, is to continue its sponsorship of Newcastle United Football Club after signing a new four-year deal valued at between £1.5 million and £10 million. Rock has been the football club’s shirt sponsor since 2004 and the new deal will run from season 2010/11 to 2014. However, […]

January 18, 2010 More
Richard Pym to chair Northern Rock ‘bad bank’

Richard Pym to chair Northern Rock ‘bad bank’

Richard Pym, the chairman who was appointed to stabilise Bradford & Bingley last year, is to oversee Northern Rock’s ‘bad bank’ operations. It was announced earlier this month that nationalised Northern Rock would be split into two, after receiving the necessary approval from the European Union (EU). New Years Day is the date that has […]

December 15, 2009 More
Date set for Northern Rock split

Date set for Northern Rock split

It was recently confirmed that crisis-torn Northern Rock would be split into two, after receiving the necessary approval from the European Union (EU). 1 January 2010 is the date that has been agreed for the Rock to be split into two divisions – a “good bank” of profitable assets and “bad bank” of toxic debts. The […]

December 8, 2009 More