|2007: Virgin Territory – David Leland|
Virgin Money have agreed a price for Northern Rock. I’m not sure if Mr Branson is having a slight joke as the jumbo sized £747million is the pricetag agreed with the Government, who are intent on selling the nationalised banks back to the private sector as quickly as possible. There will be other funds that will need to be paid, £330m of them in total if the deal works out for Virgin.
Virgin Money have made no secret of their desire and attempt to revolutionise the world of high street banking. In theory this builds nicely upon their existing financial services range, however it remains to be seen whether the typical Virgin customer has sufficient funds to make Banking profitable in these more challenging economic times.
Virgin are purchasing the “good bank” part of Northern Rock, as with most things that Virgin do, very little are actually “virgin” in the sense that a business is invariably bought and rebranded as Virgin. The toxic element of Northern Rock will be left with the British taxpayer (naturally!).