- 3 updates
A Treasury spokesman has said that the sale of Northern Rock "represented good value for money."
He said: "We will provide a full response to this report in due course.
"The decision to nationalise Northern Rock in 2008 was taken in the interest of financial stability.
"The sale of Northern Rock plc to Virgin Money last year represented good value for money for the taxpayer, and has helped increase high-street competition."
Margaret Hodge, chair of the public accounts committee, said the sale of the bank was handled well but still led to a loss for taxpayers of nearly half a billion pounds.
Mrs Hodge said:
More than £66 billion of taxpayers' cash invested in RBS and Lloyds may never be recovered, a spending watchdog warned today.
The public accounts committee criticised the the Treasury for making a series of mistakes in its handling of Northern Rock, saying that officials were slow to react to the banking crisis because they lacked correct skills and understanding.
Margaret Hodge, chair of the committee, said the sale of the bank was handled well but still led to a loss for taxpayers of nearly half a billion pounds.