Who Will Win the Race For Northern Rocks 20 Billion Pounds Worth of Assets?
The British Government needs to offload Northern Rock before the impending General Election. Northern Rock was the first British financial institution to be taken over by the Government when the credit crunch started. The terms of the sale will mirror those of the Bradford & Bingley, the Deposits estimated to be worth approximately £20billion and any mortgage assets that are deemed to be “safe” or “good”. The remainder of the assets which are deemed as “toxic” or “bad” will be retained by the Government. There are two main protagonists in this battle of financial institutions both of whom would benefit a great deal if they secure the acquisition of the Northern Rock assets. There is a third contender in the form of BBVA, a Spanish bank who are said to have a strong desire to replicate Santander’s entry into the British banking industry. It remains to be seen if their intentions are serious. If they are they will need to be quick. Virgin Money who missed out on buying Northern Rock firs
