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£4 billion of taxpayers could go to Northern Rock rescue

Posted by matthew | On: May 18 2012

Spending watchdog said that taxpayer’s money should have been rewarded for pumping capital in to the unsuccessful bank.

But the treasury has said that NAO was erroneous to claim the poor investment was to blame on the way to the loss of £2-£4 billion.

When northern rock failed few years back virgin added a bit to the bank and Virgin has obtained its 75 branches, one million clients, and their £14billion of mortgages and £16billion of investments.

The case of Northern Rock raises doubts over whether taxpayers will get back their cash from the much superior rescues of Lloyds and Royal Bank of Scotland.

Experts say taxpayers have lost £45billion on the lifeline to keep afloat the two, now part-owned by the State, with no imminent chance of a sale.

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