Sir Richard Branson’s Virgin Group is in talks to take over Northern Rock, the stricken mortgage bank, The Times has learnt.

It is understood that the mobile phones-to-flights giant is in discussions with a group of Middle East and US investors about forming a consortium that will inject cash into the bank in exchange for a controlling stake.

If successful, Virgin will then take over the day-to-day management of the business and bring it under its Virgin Money brand, which already offers mortgages, credit cards and insurance services. The group has met Northern Rock’s management and could make a statement about its intentions as early as today. “They [Virgin] are taking it very seriously and they are credible,” one person with knowledge of the negotiations said.

Virgin is the latest suitor to emerge for Northern Rock, which went into financial meltdown after it was forced to seek emergency funds from the Bank of England in mid-September.

It prompted the first big run on a British bank in more than 100 years.

Other bidders, including two American investment groups, JC Flowers and Cerberus, are also understood to be circling the Newcastle bank. A fourth, as yet unnamed suitor, has also met Northern Rock’s management and several US private equity firms, including The Blackstone Group, Lonestar and Apollo are also believed to be circling. No formal proposal has yet been tabled and sources say any deal is still weeks or months away. Virgin is believed to be putting together a financing package which could also include debt from Citigroup, the US bank that has agreed to be on standby to lend as much as £10 billion to Northern Rock or bidders for the company.

Earlier this week it emerged that other banks were also in talks about a funding package that could top £25 billion. Virgin will not formally bid for the bank. The plan is to take control of Northern Rock through the issuance of new shares that will be given to the investor group. The news of Virgin’s approach came as it emerged that Northern Rock had borrowed a further £2.3 billion from the Bank of England, bringing the total borrowed so far to £13 billion.

In a move to halt the run on Northern Rock, the Bank of England has promised to guarantee all depositors including new joiners since the crisis took hold. The guarantee and the line of credit are designed to smooth the sale or give Northern Rock time to rebuild itself as an independent business.

Yesterday, Alistair Darling, the Chancellor, told MPs that he would introduce legislation in the new year that would guarantee the savings and deposits held in all banks and building society accounts.

Despite complaints from banks and insurers that the figure will be too high, savings up to £100,000 are expected to be covered, Treasury officials said. Mr Darling promised “comprehensive change”.

He said: “When problems do occur we need to have a system in place that is clear and reassures depositors. This regime would mean: depositors are insulated from a bank that has failed, greater compensation for them, and certainty their compensation can be paid out quickly.”

Mr Darling left any figure out of his consultation paper, which was issued yesterday, to avoid allegations that he has already made up his mind. He first mentioned the £100,000 figure in an interview with The Times last month.

But a source close to him said: “The figure of £100,000 is out there. It could be higher, it could be lower, but that’s the kind of figure that is under examination.”

The Government has already introduced 100 per cent protection for savings up to £35,000 after the run on the bank. This was extended to cover new savers this week. But the document showed that Mr Darling’s plans will go even farther to include what it calls “critical banking services”.

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