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.”
Read report on the remutualisation of Northern Rock
Notes to editors:
1. Mutuo stated in June that the Government should properly examine the mutual option before a sale.
2. To read a report on the remutualisation of Northern Rock, click here: The remutualisation of Northern Rock – July 12 2011