Virgin Money announces new Foundation as Northern Rock Foundation prepares to close
Virgin Money announced a new charitable foundation yesterday to support communities in the North East of England.
The announcement comes as the Northern Rock Foundation prepares to hand out its final grants.
The future of the Northern Rock Foundation has hung in the balance since Virgin Money’s buy-out of Northern Rock in 2011. The bank and the charity have failed to reach a funding agreement and the Foundation announced in September that it was forced to close.
The new Virgin Money Foundation will launch with a £4m investment from the government which was announced by chancellor George Osborne yesterday.
The government’s investment will be spread over four years and will come from the fines levied on banks for manipulating the London Interbank Offered Rate (Libor) financial benchmark.
The figure will be matched by Virgin Money in the first year with a possible increase going forward.