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| Version 3 | Version 4 |
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| Northern Rock jobs under threat | Northern Rock jobs under threat |
| (29 minutes later) | |
| Jobs at Northern Rock will be cut if Virgin Group ends up controlling the troubled bank, the BBC has learned. | Jobs at Northern Rock will be cut if Virgin Group ends up controlling the troubled bank, the BBC has learned. |
| Virgin has abandoned its commitment to no job cuts because government-backed bonds to be issued by Northern Rock have to be repaid within three years. | Virgin has abandoned its commitment to no job cuts because government-backed bonds to be issued by Northern Rock have to be repaid within three years. |
| Sir Richard Branson had previously said that he was confident there would be no redundancies under a Virgin rescue. | Sir Richard Branson had previously said that he was confident there would be no redundancies under a Virgin rescue. |
| Northern Rock's current management, who have submitted a rival rescue plan, said it will fight to prevent job cuts. | Northern Rock's current management, who have submitted a rival rescue plan, said it will fight to prevent job cuts. |
| Different views | Different views |
| But Virgin Money boss Jayne-Anne Ghadia, who would run Northern Rock in the event a Virgin rescue was accepted by the Treasury, has told the BBC that job losses would be greater than originally anticipated. | But Virgin Money boss Jayne-Anne Ghadia, who would run Northern Rock in the event a Virgin rescue was accepted by the Treasury, has told the BBC that job losses would be greater than originally anticipated. |
| The chancellor has decided that the priority is speedy repayment of all those taxpayer loans, even if it means job losses Robert Peston, BBC business editor Read Robert's thoughts in full | The chancellor has decided that the priority is speedy repayment of all those taxpayer loans, even if it means job losses Robert Peston, BBC business editor Read Robert's thoughts in full |
| "We're confident we can make forward payment to the taxpayer in less than three years. And part of that solution is reducing the size of the bank going forwards," Ms Ghadia told the BBC. | "We're confident we can make forward payment to the taxpayer in less than three years. And part of that solution is reducing the size of the bank going forwards," Ms Ghadia told the BBC. |
| No number was put on the likely job cuts, but employee figures would probably come down from 6,000 to about 5,000, the BBC's business editor Robert Peston said. | No number was put on the likely job cuts, but employee figures would probably come down from 6,000 to about 5,000, the BBC's business editor Robert Peston said. |
| He added: "The government may be embarrassed by her disclosure that job losses would stem from financial conditions imposed by the Treasury." | He added: "The government may be embarrassed by her disclosure that job losses would stem from financial conditions imposed by the Treasury." |
| Fighting back | Fighting back |
| Reacting to the Virgin plan, Northern Rock's deputy chief executive David Baker, who is part of the team working on the bank's own restructuring said they would keep fighting to save the jobs. | Reacting to the Virgin plan, Northern Rock's deputy chief executive David Baker, who is part of the team working on the bank's own restructuring said they would keep fighting to save the jobs. |
| Under its rescue plan, Northern Rock management would aim to build up new lines of business in order to retain staff. | Under its rescue plan, Northern Rock management would aim to build up new lines of business in order to retain staff. |
| The Unite union is meeting with Virgin tomorrow to discuss the impact of its proposals. | The Unite union is meeting with Virgin tomorrow to discuss the impact of its proposals. |
| "The staff of the bank remain their greatest asset, it is vital that the bidders recognise this," Unite's Deputy General Secretary Graham Goddard said. | "The staff of the bank remain their greatest asset, it is vital that the bidders recognise this," Unite's Deputy General Secretary Graham Goddard said. |
| On Friday, the government told all potential rescuers that up to £40bn of Treasury-backed bonds to be issued by Northern Rock would have to be repaid in between one and three years. | On Friday, the government told all potential rescuers that up to £40bn of Treasury-backed bonds to be issued by Northern Rock would have to be repaid in between one and three years. |
| In order to do that, any rescuer - including Virgin - would have to shrink the size of Virgin's mortgage book from more than £100bn to about £60bn. The smaller the business, the fewer people it would need to service them. | In order to do that, any rescuer - including Virgin - would have to shrink the size of Virgin's mortgage book from more than £100bn to about £60bn. The smaller the business, the fewer people it would need to service them. |
| "In other words, the chancellor has decided that the priority is speedy repayment of all those taxpayer loans, even if it means job losses in Newcastle," Robert Peston said. | "In other words, the chancellor has decided that the priority is speedy repayment of all those taxpayer loans, even if it means job losses in Newcastle," Robert Peston said. |
| Important business | Important business |
| Northern Rock is a key employer in the North East and job losses could prompt a further backlash over the government's handling of the crisis at the bank. | Northern Rock is a key employer in the North East and job losses could prompt a further backlash over the government's handling of the crisis at the bank. |
| The tight deadline is thought to have ruled investment fund Olivant out of the race to control the Newcastle firm. | The tight deadline is thought to have ruled investment fund Olivant out of the race to control the Newcastle firm. |
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