Today the Government has announced that it will sell Northern Rock to Virgin Money for £747 million.
Speaking after the news was announced, Peter Hunt, Chief Executive of the mutuals thinktank, Mutuo said:
“Contrary to some of the reports today, the mutual sector engaged fully with the Government in relation to Northern rock and we are disappointed that a mutual solution hasn’t been found. Northern Rock couldn’t remain nationalised indefinitely, but by taking a longer-term view the Government could have demonstrated its commitment to mutuals and secured a better return for the taxpayer’s £1.4bn original stake. The reluctance of the Government to publish its critique of the mutual option leads us to believe that remutualisation was never under serious consideration.”
Notes to editors:
2. To read a report on the remutualisation of Northern Rock, click here: The remutualisation of Northern Rock – July 12 2011