England's White Dragon

England's White Dragon
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Thursday, 17 November 2011

English Taxpayer lose over £600 million as Northern Rock is sold off to Virgin Money

English Taxpayer lose over £600 million pounds out of their pocket as, Northern Rock is sold off to Virgin Money (despite this British Government promises that it wouldn't cost the English tax payer a penny and they would get all the cash that went into it) and will Richard Branson’s bank be any different than that of any other high street back, that only looks after the rich and rejects the poor?

The British Government has so far invested £1.4billion in troubled bank but will receive a maximum of £1billion back?

In 2009, half-wit Gordon Brown said banks would be 'paying money to the tax payers, not the other way round' Chancellor Osborne says offer is 'the best deal' for English taxpayers one has to wonder who is lining whose pockets out of this deal?

Virgin presence in mortgage market (looking after the rich) (has 75 branches and around 1m customers, a £14bn mortgage book and retail deposits worth £16bn) but Branson's group will not buy 'any bad bank' spun off from Northern Rock

The bailed-out bank Northern Rock is to be sold to Virgin Money for just £747million with a loss of over £400million to the English taxpayer so Virgin money already made more than 400 million pounds profit form the good old English tax payers who willing shell out their taxes and struggle to make ends meet just another kick in the teeth.

Of course we get the “Despite repeated assurances that the public purse would not be left out of pocket, the Treasury today confirmed that Sir Richard Branson's company would be buying the firm at a knockdown price so whose going to be out of pocket then? The English tax payers of course as is the norm these days

The British Government has injected over £1.4billion into the Newcastle-based bank since it was taken into public ownership in February 2008. Money which could have been better spent on services that are now being cut?

Chancellor George Osborne said that the sale represented 'the best deal for taxpayers', even though ministers had been hoping that Northern Rock would eventually make a profit for the State.

It is second time lucky for Virgin Money, which failed in a bid to buy the Newcastle-based bank following its collapse in 2007.

The proposed acquisition, which gives Virgin a presence in the mortgage market for the first time, includes 75 branches and 2,100 staff, one million customers, a £14billion mortgage book and retail deposits worth £16billion. Virgin Money, which was founded in 1995, currently has around three million customers.

At the time the bank was nationalised, the Labour Government predicted that taxpayers would profit from the deal by selling Northern Rock at a higher price than they had paid for it.

In 2009, then half-wit Prime Minister Gordon Brown said: 'At end of the day banks will be paying money to the tax payers and, not the other way round.' (Well just one of the many things Brown predicted and got wrong)

But under the Virgin deal, which is expected to go through on 1 January 2012 - subject to regulatory approval - the State (English tax payers) will lose well over £400million and potentially as much as £900million could even be a lot more.

It was in 2007 that rumours that the bank was struggling to fulfil its obligations triggered huge queues outside its branches from customers trying to withdraw deposits, and threatened a bank run police had to be called in just in case riots took place.

After its British Government takeover, Northern Rock was split into two parts, a solvent 'good bank' and a 'bad bank' which took on the company's riskier liabilities.

Of course only the 'good bank' will be bought by Virgin Money, the financial services group which is part of Sir Richard Branson's business empire, well no one is going to buy the bad parts.

The operational headquarters of the combined business will be in Newcastle, while Virgin Money has pledged no further compulsory redundancies beyond those already announced for at least three years.

Virgin Money chief executive Jayne-Anne Gadhia said the deal would create a 'major new competitor' in the UK retail banking sector which is just another lie, it will be just the same as any other high street bank, if you not well off don’t bother asking as it doesn’t matter what type of person you are the computer says no.

She went on to say: 'The two businesses complement each other well and together they will create a strong bank with over four million customers.'

The deal comes at a time of high volatility in the banking sector as businesses struggle to react to the continuing debt crisis in the Eurozone.

Mr Osborne said there would be a 'powerful new presence on the High Street' which would offer 'real choice and competition' another load of rubbish and lies.

He added: 'It's also good for “British taxpayers meaning the English Tax payers as they foot all the biggest bills and pay everyone else’s, “we are” getting some of the money back that we put into the banking system under the last government “some” being the word, less than half of what it’s worth or what was put into it?

Now the “Spin”' he said, Spin, spin and it's also good for the north-east of England, because we are seeking to protect jobs there and make sure that the headquarters of Virgin Money will be in Newcastle but for how long? He didn’t say'

He then added that the British Treasury had taken independent advice on the deal and looked carefully at all the figures what he left out was those looking at the figures where blind or on the make? Because something just not right in the deal?????.

He went on to say; 'It was clear to us (the blind) that this was the best deal for the British taxpayer, (English taxpayer) we were getting more money back than any other deal on the table,' he said. (But who is really making the money out of this deal certainly not the English taxpayers?

Then half-wit come snake had to add something, Nick Clegg insisted the sale was 'good value' for taxpayers despite leaving them over £400million out of pocket? Nick Clegg wouldn’t no good value if it jumped up and slap him in the face sounds very good value to lose over £400 million pounds, and this is the idiot we have in government “God save England” because no one else will.

He was speaking at the Science Museum in London, he said: 'The strong recommendation made to us was that this was the best value for taxpayers.

'Of course we have an overriding duty to provide good value for taxpayers, that's what we have sought to do through that decision.' What an utter and complete idiot this man is?

Shadow chancellor Ed Balls welcomed news of the sale, but suggested that the Government could have secured a better deal if it had waited longer before selling off the bank.

He told BBC Radio 5 Live: 'It was definitely right to take Northern Rock into public ownership in 2008 to stop a catastrophe, and it is good news it is now going back to the private sector.

'We will need to look at the details. Given the original money put in from the taxpayer was £1.4 billion, we are going to get less back, we're going to have a loss here.

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