Northern Rock Sale Could Cost Britain $3.2B, Auditor Says

Law360, New York (May 18, 2012, 2:20 PM EDT) -- Britain will lose at least £480 million ($732 million) from the sale of nationalized bank Northern Rock PLC to Richard Branson’s Virgin Money Holdings Ltd. and could forgo £2 billion ($3.2 billion) in potential returns, the country's audit office said Friday.

The government will likely recoup the £37 billion it injected into Northern Rock to keep the tottering lender afloat in 2008. But the loans, hastily approved at the height of the financial crisis, charged an interest rate far lower than a private sector investor would...
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