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British government sells Northern Rock to Virgin


British government sells Northern Rock to Virgin


The British government has agreed to sell Northern Rock, the failed mortgage lender it nationalised in 2008. It’s being bought by Virgin Money, the banking arm of Richard Branson’s Virgin empire.

Northern Rock, was nationalised in early 2008 after banks abruptly stopped lending to each other in the credit crisis.

The deal could eventually net the equivalent of more than a billion euros for the British government.

IMF’s Europe chief steps down

The International Monetary Fund’s Europe director, Antonio Borges has resigned for what he says are personal reasons. However, analysts believe it is a sign the global lender is setting a more forceful course of action in dealing with the European crisis.

Last month, Borges was forced to issue a hasty retraction after suggesting publicly that the global lender could buy Spanish or Italian bonds alongside the euro zone’s bailout fund. He amended his remarks to say the IMF could only lend its funds to countries and could not intervene in bond markets directly.

Borges has been replaced by Reza Moghadam, currently director of the fund’s strategy, policy and review department.

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