The Northern Rock bank was nationalised in 2008 following its near collapse at the onset of the global credit crunch. The government subsequently split the bank into two:
Northern Rock plc with good assets, and Northern Rock (Asset Management), into which was placed its bad debt.
UK government stupidity Level 2
Government had injected £1.4bn of taxpayers money into Northern Rock plc.
UK government stupidity Level 3
Northern Rock plc is being sold to Virgin Money for £747m. Virgin Money was "expected" to pay an additional £50m within six months, and then a further £150m.
So Northern Rock plc will be rebranded as Virgin Money, which has pledged no compulsory job cuts for three years.
UK government stupidity Level 4
Northern Rock (Asset Management), whit its bad debt, left to taxpayers to swallow and it still owes the Treasury £21bn. The government said it had no plans to sell Northern Rock (Asset Management).
UK government stupidity Level 5
Chancellor George Osborne said: "The sale of Northern Rock to Virgin Money is an important first step in getting the British taxpayer out of the business of owning banks. "It represents value for money, will increase choice on the High Street for customers, and safeguards jobs in the North East."
UK government stupidity above any Level
George Osborne appointed Chancellor of the Exchequer of the United Kingdom, on the basis of lifetime experience in the world of finances:
1) Osborne's first job was entering the names of people who had died in London into a National Health Service computer.
2) He also briefly worked for Selfridges, counting and re-folding towels.
3) And that is about it.
Warning
Do not try this at home, in public or to yourself unless you are Financial Genius.
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