Treasury clashes with FSA over Northern Rock bid

The Treasury is keen to achieve a price of £1bn and is exploring the idea of allowing the successful bidder to liberate about half of it after the deal, sources told the Times. But the FSA is understood to oppose such a substantial removal of capital and wants the new owner to maintain a large financial cushion. Sir Richard Branson's Virgin Money and the American private equity firm JC Flowers are currently the only two bidders. Final bids are due in by the end of next month and the government wants a sale by the end of the year, the Times reports. The Treasury has already cut the...