Virgin set to bring in ex-Rock boss after bank licence move
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Virgin Money has submitted an application for a banking licence to the FSA.
It is also tipped to be in talks with former Northern Rock chairman Bryan Sanderson over him becoming a non-executive director of the bank.
Virgin Money is understood to be considering options such as launching a joint venture with another bank, buying part of Northern Rock or starting a bank from scratch.
Establishing a bank can take up to six months. Virgin is understood to be planning to start an online bank and will take deposits and offer mortgages.
Virgin sold its 25 per cent stake in mortgage firm The One Account to Royal Bank of Scotland in 2001. It currently offers credit cards, savings and investments.
Virgin made a failed bid for Rock in 2007 and is understood to still be interested in buying the “good” part of the bank if the European Commission approves Rock’s plans to split in two.
A Virgin Money spokesman confirmed that the firm had just applied for a banking licence. He says: “This is purely an admin procedure. Since Rock, we have stated our intention to become a bank.”
Virgin Money would not comment on whether it was in talks with Rock over buying part of the business.
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