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News Tag: Northern Rock News

February 28, 2012

Taxpayers to make £11bn profit from Northern Rock

by Jan Harris
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 credit crunch, taxpayers will ...




February 13, 2012

NBNK considering bid for Clydesdale Bank

by Jan Harris
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 the takeover rumours, saying in a ...




January 6, 2012

Virgin Money introduces charge for current accounts

by Jan Harris
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 such as overdraft fees.” Her comment ...




November 17, 2011

Government sells Northern Rock to Virgin Money

by Jan Harris
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". Northern Rock was taken into ...




August 3, 2011

Northern Rock losses narrow

by Kay Mitchell
”Northern
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 at £1.5 billion, compared with £2 billion the previous ...




June 15, 2011

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

by Kay Mitchell
”Chancellor
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 Banking (ICB) in ...




March 28, 2011

Northern Rock to axe 680 jobs

by Kay Mitchell
’Northern
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 work for the bank following the latest ...




March 9, 2011

Northern Rock reports £232m loss

by Kay Mitchell
”Northern
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 represented a year of significant restructuring for Northern Rock ...




January 2, 2011

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

by Kay Mitchell
”Compensation
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 a bank is close to ...




July 27, 2010

FSA fines Rock’s former finance director

by Kay Mitchell
”FSA
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 credit director, Richard Barclay, were fined a total ...




June 9, 2010

Turnaround plan sees further 650 jobs go at Northern Rock

by Kay Mitchell
”Turnaround
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 Guernsey in September. ...




June 2, 2010

Northern Rock’s Guernsey operation to close in September

by Kay Mitchell
”Northern
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, of which have received letters ...




May 24, 2010

Northern Rock savers lose 100% guarantee

by Kay Mitchell
”Northern
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 put in place after Northern Rock collapsed ...




April 28, 2010

Rescued lenders fail to impress mortgage borrowers

by Gill Montia
”Rescued
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 loan customers, and Lloyds TSB 48%. In ...




April 13, 2010

Former Northern Rock directors fined and banned

by Kay Mitchell
”Former
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 been fined £140,000 by the City ...




March 24, 2010

‘Bad banks’ of Rock and B&B to merge

by Kay Mitchell
”‘Bad
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 taxpayers’ interests in High Street banks, ...




February 24, 2010

Northern Rock savers to lose 100% guarantee

by Kay Mitchell
”Northern
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 in place after Northern Rock collapsed ...




January 18, 2010

Newcastle Utd signs 4-year deal with Northern Rock

by Kay Mitchell
”Newcastle
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, the maximum value of the ...




December 15, 2009

Richard Pym to chair Northern Rock ‘bad bank’

by Kay Mitchell
”Richard
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 been agreed for the Rock to ...




December 8, 2009

Date set for Northern Rock split

by Kay Mitchell
”Date
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 “good bank” will be known as Northern Rock plc, ...