Richard Branson, Gordon Brown, and Northern Rock??

[RT/10Dave]

I was watching BBC Breakfast TV this morning, they were interviewing Richard Branson and discussing the economy, and specifically the Nationalisation of Northern Rock. It was mentioned that Virgin had wanted to buy Northern Rock, but that they were not allowed and that Gordon Brown had asked him personally not to mention that he had wanted to buy it, it was then nationalised.

I have to admit to not fully understanding the situation regarding nationalisation of banks, or what the criteria for nationalisation is, but I don't understand why the Government would have chosen to nationalise Northern Rock when a good deal was on the table from Virgin.

I also found it interesting to hear that Virgin had also looked at Bradford & Bingley some time ago but decided against it as their Mortgage Book was not good, yet the Government chose to nationalise that one as well, and, (if I'm understanding it right) sell what appears to be the good part of Bradford & Bingley's book to Santander and keep the rubbish...

I'm confused about Bradford & Bingley, but even more confused about the background dealings surrounding Northern Rock...

Can anyone shed any further light on any of this?

Edited by RT/10Dave on Monday 29th September 10:51

[Timmy35]

RT/10Dave said:

Can anyone shed any further light on any of this?

Edited by RT/10Dave on Monday 29th September 10:50

Probably that Beardie wanted to buy the NR brand and loan book, but cull the staff.

The staff mostly live in Labour voting heartland.

If it was C&G they wouldn't have given a stuff.

[Swilly]

Timmy35 said:

RT/10Dave said:

Can anyone shed any further light on any of this?

Edited by RT/10Dave on Monday 29th September 10:50

Probably that Beardie wanted to buy the NR brand and loan book, but cull the staff.

The staff mostly live in Labour voting heartland.

If it was C&G they wouldn't have given a stuff.

That sounds like its spot on the money...... our money of course !!

[scotal]

Branson must be pissing himself, he has had a team working on the mortgage side of Virgin money for a while, his competition is imploding..... lovely.

[marsred]

He'll own them all soon anyway, it'll be the VIRGINLLOYDSTSBHBOSRBSHSBCBARCLAYS Group plc.

[Rico]

Sounds similar to the rumour that he tried to buy Concorde but couldn't for some stupid reason...

[catso]

RB has probably not made a 'generous' donation to the Labour party...........

[smilerbaker]

I worked for a co. that has dealing with mr branson on a high profile project, he will say all sorts of things the public want to hear making himself sound like a saviour, but the actual deal he puts together is so laughably bad he knows it wont ever get chosen, and if it did he would be in the money big time.

In our dealing he was spouting off about being non profit etc etc yet his companies consultancy fee's where higher then the other consortiums profit margins.

I would imagine he wanted to pay £1 for NR yet still have the gov underwrite all its debts, or some other such mad scheme.

[BoRED S2upid]

How can you tell if their Mortgage Book is not good? Probably the LTV estimates is it? All they could possibly get is the LTV and the areas where properties are located.

[smilerbaker]

BoRED S2upid said:

How can you tell if their Mortgage Book is not good? Probably the LTV estimates is it? All they could possibly get is the LTV and the areas where properties are located.

maybe by asking, how many 120% mortgages have you given out in the last 12 months, Oh that many, erm, no thanks

[HiRich]

RT/10Dave said:

I have to admit to not fully understanding the situation regarding nationalisation of banks, or what the criteria for nationalisation is, but I don't understand why the Government would have chosen to nationalise Northern Rock when a good deal was on the table from Virgin.

The "good deal on the table" was anything but, except for Branson. The amount he was offering to pay was a fraction of the true value. Furthermore, that part of the Virgin group wasn't even capitalised to pay what little that was being offered - they were trying (and failing) to raise the funds on the market.

Branson was betting that Brown wouldn't have the balls to nationalise Northern Rock, although even in October it was pretty clear that nationalisation was the only game in town. Eventually, even Brown accepted (though rather late) that effectively giving Virgin a major High Street bank would have created a scandal of epic proportions.