Chancellor George Osborne has launched the sale of Northern Rock, Financial Times reports. The state, which had invested about £1.4 billion into Northern Rock, expects to raise £1 billion from the sale.
Northern Rock, which was divided into a ‘good bank’ consisting of new mortgages and savings and a ‘bad bank’ comprising of toxic assets, will sell the good bank part and retain the bad mortgages worth £44 billion, which posted profit last year, adds Reuters. The bank has about £16.7 billion in retail deposits and £12.2 billion of mortgage loans.
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