Northern Rock bailout could cost taxpayer £2billion - The Sun

The National Audit Office last night insisted that selling the "good" part of the bank to VIRGIN MONEY last November was the best deal at the time.

But it warned the continued cost of funding the "bad" part of Northern Rock, still in taxpayers hands, could lead to a net loss.

The Audit Office also attacked Alistair Darling for failing to look at the "full consequences" of his plans to split the Rock in two in 2009.

The Taxpayers Alliance said the report was further evidence governments should not "invest in banks".

Matthew Sinclair, director, said: "Investors were hardly queueing up to put their money into Northern Rock.

"But politicians kept telling us they knew better and we would make a profit bailing them out.

"Instead taxpayers are left stumping up for huge losses while those responsible for ordering this bailout remain in denial."