Car Insurers Debate Over Future Profits

UK car insurers have been running an unprofitable business for 14 years. Independent market analysts, Datamonitor, say 2009 looks to be a profitable year despite the doubts

March 13, 2008

Budget Report Expectations

Chancellor Darling's Budget Report is expected to raise taxes on alcohol, fuel emissions, flights and many other issues concerning the economy. Tax burdens expected to increase on poorer families

March 12, 2008

Card Fraud Rises Again

Card fraud has increased over past year. Whilst chip and PIN technology has been successful in the UK, criminal activity overseas has increased 77 per cent

March 12, 2008

Tax Cuts Needed To Restore Confidence

Appeals for corporate tax cuts are submitted to the Treasury as it prepares its Budget report this Wednesday. Business and banking sectors are worried about the direction of the UK economy

March 10, 2008

First Time Buyers Take Hit From Stamp Duty

Stamp duty tax has not kept up with the rate of increase in house price inflation over the past decade. Yet another hurdle first-time buyers must leap over to get on the property ladder

March 10, 2008

Read all Finance News

Virgin to Take Majority Stake in Northern Rock

Despite any further comments from both Virgin and Northern Rock the BBC has learnt of the forthcoming plans put together by entrepreneur Sir Richard Branson.

Robert Preston, BBC business editor, said that the Virgin Group would shortly be delivering an update regarding a potential plan to take a majority stake in Northern Rock and rebrand it 'Virgin Money'.

It is thought that Northern Rock would be set to maintain its stock market listing as Branson puts together a group of investors in a bid to help the bank recover from its recent crisis.

Any go ahead by the Virgin Group would however be dependent on continuing financial support from the Government towards Northern Rock, as any successful bidder would have to refinance the £13bn borrowed in emergency funds from the Bank of England and underwritten by the Treasury. This would prove to be an extremely difficult task given the current market conditions and the possibility that the Treasury could withdraw all support upon completion of a deal.

Last month Northern Rock was forced to seek an emergency loan from the Bank of England when it ran into funding difficulties due to the global credit crunch stemming from the US. Since the majority of money it lends to borrowers comes from other banks, Northern Rock was hit especially hard.

Sir Richard Branson and the Virgin Group diversified into the financial sector back in 1995 and to date offers a range of finance related products such as credit cards, insurance, savings and pensions.

Published on October 15, 2007

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