The call was said to be "acrimonious" and Mr Darling acknowledged that "Sir" Richard (Branson) was "disappointed" that his plan had been ditched. He said: "It is better for the Government to hold on to Northern Rock for a temporary period and as and when market conditions improve the value of Northern Rock will grow and therefore the taxpayer will gain.*****
UK Financial Investments said it has agreed to sell 100pc of Northern Rock to Virgin Money for £747m in cash immediately, but this could potentially rise to around £1bn.
Under the deal, another £50m is “expected” to be paid within six months. The Treasury will also benefit by up to £80m if the bank floats in the next five years and retain £150m of Tier 1 capital notes.
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This represents a loss of between 400 and 700 million pounds.
I was wondering if Mr Darling would like to explain to me (because I'm one of the poor suckers who is paying for this, and I can ill afford it) just in what parallel universe a loss of between 400 and 700 million pounds represents a gain to the taxpayer.
At the same time I was wondering if Mr Osborne would like to let me know why he thinks that this is a good time to sell, or didn't they do sums at his expensive school?
Answers on a post card please.