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Step forward Richard Branson, Northern Rock is for sale!

The UK government will later this week confirm that Northern Rock will be split into a "good bank" and a "bad bank" after expected clearance from the European Commission is confirmed. It has also been revealed that the mortgage specialist assets of the group will be sold in the short term and should raise around £1.5 billion which will be injected back into the UK government coffers.



We are also awaiting confirmation that Robin Budenberg, a senior UBS banker, will take the place of John Kingman as the head of the UK Financial Investments company. This is the vehicle set up by the UK government to oversee and manage UK taxpayer stakes in various UK banks, with the hope of raising significant funds in the medium to longer term. At a time when bankers have been ridiculed by the UK government and the national press, it is bizarre to see Mr Budenberg take on this role and effectively give up millions of pounds in bonuses and salary at UBS for a basic £143,000 a year.



Quite what will happen to the 70% stake in Royal Bank of Scotland and the 43% stake in Lloyds bank in the short to medium term is unknown but there will be movement at some point with the government hopefully of bringing in significant funds in due course.

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