Dally wrote:
The immediate future looks bad for banks, so you could argue it's a good, albeit desperate, time to sell.
The banks themselves don't have much confidence - announced job lossses - Llotds 14,000, Bank of America 30,000, HSBC 30,000, etc, etc
Do not forget this is the "good" part of the bank with all the toxic debt removed. That is why Virgin Money have bought it.
Virgin Money intend to float the bank on the stock market within two to five years. When they do they will expect to make money on that transaction meaning they will and the taxpayer won't.
If Virgin are going to do that this confirms that our idiot of a Chancellor could have held onto the bank and done the same thing and the sale would then be for our benefit as tax payers not Virgin Money's.
He has clearly sold the taxpayer short so he can try and meet his politically inspired target of deficit reduction before 2015 (which looks ever more unlikely by the day) so this is a prime example of short term idiot thinking that not only sells the taxpayer short now but hands a profit to Virgin Money in a few years we the taxpayer should have got.
Virgin have bought this to sell it so they clearly think money is to be made on the deal. Money Osborne has ensured will go to a company rather than into the public coffers.
I was going to say this shows his incompetence but in actual fact it is typically Tory letting his City mates make a profit at the ordinary persons expense.
