Christmas sale for Northern Rock as potential buyers gather

Published 27th Apr 2009

State-owned Northern Rock could be sold off by Christmas, much earlier than previously expected, as the Treasury rushes through plans to bolster government finances.

The Newcastle-based lender was the first casualty of the credit crunch and had to be bailed out by the Bank of England to the tune of £25billion.

Adviser Credit Suisse is examining plans to split the bank in two to separate its most toxic loans and assets into a so-called 'bad bank'.

As part of this process sources close to Northern Rock say advisers have already drawn up a sale plan for the customer savings business and its network of 70 branches.

While this plan is in its early stages it has emerged that discussions have already taken place with potential buyers.

These are thought to include Virgin Money, National Australia Bank and Abbey's Spanish parent Santander.

Source: ' Daily Mail '

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