Rock to cost taxpayers around £2bn

The taxpayer could lose about £2bn once the assets of Northern Rock Asset Management are wound down, the National Audit Office estimates.

After its collapse in 2009 the bank was split into Northern Rock plc – the good bank – and NRAM – the bad bank.

Amyas Morse, head of the NAO, says: “A prompt sale of Northern Rock plc was the best option to minimise losses on the £1.4bn of public money invested in it. But most of the former Northern Rock’s assets will be in public ownership for years and there could be a net cost for the taxpayer of some £2bn.”