A high-octane consortium led by Virgin Group submitted a proposal on Friday to take over Northern Rock, a deal that would reverse the hamstrung bank in a manner similar to the way in which Sir Richard Branson turned NTL into Virgin Media.

Members of the consortium include Wilbur Ross, the US investor who specialises in buying distressed businesses, and the Toscafund Asset Management group chaired by Sir George Mathewson, former chairman of Royal Bank of Scotland.