NRAM plc
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| Public ownership | |
| Industry | Bank |
| Founded | 1965 Renamed as Northern Rock (Asset Management) in 2010 |
| Headquarters | Bingley, England, UK |
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Area served
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UK |
| Services | Mortgages |
| Owner | Her Majesty's Government (UKFI / UK Asset Resolution) |
| Website | www |
NRAM Limited (previously Northern Rock (Asset Management) plc and NRAM plc) is a British asset holding and management company which was split away from the Northern Rock bank in 2010. It is currently under public ownership, due to the bank's nationalisation in 2008. The company continues to service a residential mortgage book of approximately £50 billion.
NRAM comprises the bad debts of the former Northern Rock bank and is described as the "bad bank". The remainder, Northern Rock plc, was designated the "good bank", and in 2012 was bought by Virgin Money. Since nationalisation, the assets of NRAM have been sold off in parts, most recently with the sale of £13 billion of mortgages and loans to Cerberus Capital Management in November 2015.
Northern Rock (Asset Management) plc was renamed from Northern Rock plc on 31 December 2009, and the following day the banking assets were split off into a new company called Northern Rock plc. Therefore, the current legal entity which exists as Northern Rock (Asset Management) company is in fact the company of the Northern Rock Building Society (founded 1965) which turned into a bank in 1997.
On 14 September 2007, during the financial crisis of 2007–08, the Bank sought and received a liquidity support facility from the Bank of England, following problems in the credit markets caused by the subprime mortgage crisis. At 00:01 on 22 February 2008 the bank was taken into state ownership (see the Nationalisation of Northern Rock). The nationalisation was a result of two unsuccessful bids to take over the bank, neither being able to fully commit to repayment of taxpayers' money. To better control the assets of the bank it was decided to split the company in two, forming the new bank and leaving this company as the so-called 'bad-bank'.
On 24 March 2010 UKFI announced its intention to integrate Northern Rock (Asset Management) plc and Bradford & Bingley plc under a single holding company. In October 2010, Bradford & Bingley plc and Northern Rock (Asset Management) plc were brought together under a single holding company, UK Asset Resolution Ltd.
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