Branson buys Northern Rock

Virgin Money's purchase of Northern Rock from the Treasury comes at a loss for taxpayers.

The high street bank, an iconic north-east brand, had to have £1.4 billion of equity pumped into it after coming close to total collapse in late 2007.

Former chancellor Alistair Darling opted to nationalise the lender in February 2008. His successor in No 11, George Osborne, had announced his intention to sale Northern Rock earlier this year.

Mr Osborne could have waited longer before making the sale, but advisers may have suggested the value of the bank could fall further if he delayed.

The sale comes a fortnight before the chancellor delivers his autumn statement to MPs and will be a welcome boost to Treasury coffers.

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