The government has announced that it is putting up Northern Rock for sale at a price of £1 billion.
In his Mansion House speech in London, chancellor George Osborne said that the government was ideally looking for a single buyer to take over the bank.
By opting for a single buyer, the government is likely to make more money than it would with a multitude of buyers.
The chancellor said: "The independent advice I have received is that a sale process is likely to generate substantially the best value for the taxpayer and should be explored as a first option."
The bank, which was split into two, will not be sold as it originally was.
One half, known as the "good bank", which contains about 70 branches and the savings of customers, is the bank to be sold.
The other half, known as the "bad bank", will continue to be owned by the government until its bad debts are reduced.
The chancellor also outlined plans to ring-fence banks in order to separate their retail operations from their investment banking options.
In doing so, a tax bailout on such a scale as the one announced in response to the financial meltdown of 2008 would be averted in the future.
If you would like to discuss how we can assist you further please contact us on Tel: 0800 068 0041 or email me: jason@a2ofs.co.uk
In his Mansion House speech in London, chancellor George Osborne said that the government was ideally looking for a single buyer to take over the bank.
By opting for a single buyer, the government is likely to make more money than it would with a multitude of buyers.
The chancellor said: "The independent advice I have received is that a sale process is likely to generate substantially the best value for the taxpayer and should be explored as a first option."
The bank, which was split into two, will not be sold as it originally was.
One half, known as the "good bank", which contains about 70 branches and the savings of customers, is the bank to be sold.
The other half, known as the "bad bank", will continue to be owned by the government until its bad debts are reduced.
The chancellor also outlined plans to ring-fence banks in order to separate their retail operations from their investment banking options.
In doing so, a tax bailout on such a scale as the one announced in response to the financial meltdown of 2008 would be averted in the future.
If you would like to discuss how we can assist you further please contact us on Tel: 0800 068 0041 or email me: jason@a2ofs.co.uk
Jason Oakley MBA DipFS ACIB CeRGI CeCM
Managing Director
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