Sir Richard Branson’s Virgin Money operation was named as preferred bidder for the Newcastle-based bank, with ICAEW member and CEO of Virgin Money Jayne-Anne Gadhia at the helm.

The bid, if successful, will see £11bn immediately returned to the taxpayer as the new group seeks to pay back the Bank of England’s loans, with a further £11bn down the line.

The bid needs the support of shareholders, however. Northern Rock faces administration or nationalisation if the rescue packages are unsuccessful, however neither plan would be attractive to shareholders.

Gadhia worked at RBS before taking on her role at Virgin. She left Ernst & Young shortly after qualifying to move into the private sector.

Gadhia said this week: ‘This feels like one of those events that only comes along once in a lifetime.’