29 June 2012 7:22am

NBNK Investments is to be wound up after burning through 60 per cent, or £29 million, of £49 million in seed capital.

The cashbox company was set up to exploit opportunities in retail banking in the UK, including the sales of Northern Rock, by the government, and the portfolio of Verde branches, by Lloyds Banking Group.

Clydesdale Bank, owned by NAB, was another target, but NBNK and NAB failed to reach terms on a deal.

Lloyds this week finally agreed terms to sell the Verde branches to the Cooperative Bank, leading to the decision by NBNK's directors to wind up the...