Nationalisation of Northern Rock

A number of people queuing at the door of a branch of the Northern Rock bank.
People queuing at a branch of the Northern Rock bank in Brighton on 14 September 2007.

In 2008 the Northern Rock bank was nationalised by the British government, due to financial problems caused by the subprime mortgage crisis. In 2010 the bank was split into two parts (assets and banking) to aid the eventual sale of the bank back to the private sector.

On 14 September 2007, the bank sought and received a liquidity support facility from the Bank of England,[1] as a result of its exposure in the credit markets, during the 2008 financial crisis.[2][3] On 22 February 2008 the bank was taken into state ownership. The nationalisation followed two unsuccessful bids to take over the bank, neither being able to fully commit to repayment of savers' and investors' money.[4][5]

In 2012 Virgin Money completed the purchase of Northern Rock from UK Financial Investments (UKFI) for approximately £1 billion and by October of that year the high street bank operated under the Virgin Money brand.[6][7][8]

  1. ^ "Liquidity Support Facility for Northern Rock plc – Tripartite Statement by HM Treasury, Bank of England and Financial Services Authority". Bank of England. 14 September 2007. Archived from the original on 25 December 2018. Retrieved 20 February 2008.
  2. ^ "Northern Rock appoints new Chief Executive Officer". Northern Rock. 23 July 2008. Retrieved 25 July 2010.
  3. ^ "Northern Rock chairman Sandler says turnaround to take years". Forbes. 18 February 2008. Archived from the original on 20 September 2008. Retrieved 20 February 2008.
  4. ^ "Northern Rock to be nationalised". BBC News. 17 February 2008. Retrieved 8 April 2008.
  5. ^ Atkinson, Simon (18 February 2008). "Rock recovery is Sandler's goal". BBC News. Retrieved 20 February 2008.
  6. ^ "Northern Rock sale announced by chancellor". BBC News. 17 November 2011. Retrieved 17 November 2011.
  7. ^ Falloon, Matt (1 January 2012). "UK sells Northern Rock to Virgin despite protest". Reuters. Archived from the original on 6 January 2016. Retrieved 1 January 2012.
  8. ^ "UKFI confirms completion of Northern Rock sale to Virgin Money" (PDF). UK Financial Investments. 1 January 2012. Archived from the original (PDF) on 11 January 2012. Retrieved 1 January 2012.