Northern Rock bid deadline looms

Virgin Group says it will submit a bid for the bank, while Olivant and Northern Rock’s management are also expected to make formal proposals. If the bank is sold to a private bidder, the £25bn of taxpayer loans to Northern Rock are to be converted into bonds and sold to investors. However, the bonds will be backed by the treasury, meaning the taxpayer would still lose out if the bank were to collapse at some point in the future. Nationalisation of the bank has also not been ruled out, though this is thought to be an unattractive option. The Government has not confirmed when it will anno...