The bank has been split in two as a precursor to one part being sold Northern Rock has said that it made "good progress" in 2009, as it reported a sharp fall in its annual losses.The bank lost £257.4m last year, compared with £1.36bn in 2008. Since 1 January, the Rock has been split in two, with savers' money held by a "good bank", Northern Rock PLC, which will eventually be sold. The bank said it was paying staff £13.4m in bonuses after its losses narrowed - though chief executive Gary Hoffman had waived his payout. His long-term incentive scheme would only pay out after the bank returned to profit or was sold, the company said. Under the Treasury's bonus windfall tax, the bank will also have to pay £1.5m tax on its bonuses. The eventual sale of Northern Rock PLC - expected later this year - will recoup some of the billions of pounds of public money that was injected into the bank to keep it going. There are plenty of voices - especially in the Rock's North East home - calling for the new Rock to become a mutual once more Robert PestonBBC business editor Read Robert's blog in full The other half of the old bank - renamed Northern Rock Asset Management - holds most of the bank's old mortgages.[Read more...]