Commenting on the sale of Northern Rock to Virgin Money, he said: "The announcement of the sale of Northern Rock to Virgin Money is a bittersweet moment.
“On the plus side de-nationalising this bank is a positive step, however we would have welcomed Northern Rock's return to the mutual sector after 14 years' absence.
"Northern Rock had over 100 years as a successful building society, but only ten years as a plc bank before the queues formed outside its branches.
"Remutualisation would have offered many advantages; mutuals are renowned for better customer service and, moreover, restrictions under building society legislation reinforces the prudent approach the sector takes.
“It would also have helped the Government deliver on its Coalition pledge to foster diversify and promote mutuals."
