Taxpayers Lose GBP2bn On Northern Rock Deal
Published / Last Updated on 17/05/2012
Taxpayers Lose £2bn On Northern Rock Deal.
According to the National Audit Office (NAO), once the assets of collapsed bank Northern Rock are wound down, the taxpayer could lose about £2bn. It also confirmed that taxpayers lost around £480m on the sale of Northern Rock PLC last year.
Northern Rock was rescued in 2008 at the start of the financial crisis. After nationalisation, the bank was split into a mortgage lending and savings arm, Northern Rock PLC, and a "bad bank" of sub-prime assets, Northern Rock Asset Management (NRAM). However, according to the NAO, it could be years before the assets of NRAM were wound down.