A US billionaire has offloaded his remaining stake in a North-East challenger bank.

Wilbur Ross has sold his 12 per cent investment in Virgin Money for £171.5m.

Mr Ross’ private equity firm, WL Ross & Co, had been gradually reducing its stake since 2014.

It had been the Newcastle-based lender’s second largest shareholder after Sir Richard Branson's Virgin Group.

Mr Ross, who is reportedly being eyed for a position in Donald Trump’s administration, originally took a 21 per cent stake in Virgin in 2010.

He raised it to 45 per cent when the bank paid the Government £747m in 2011 for the so-called ‘good bank’ element of Northern Rock.

Earlier this month, Jayne-Anne Gadhia, Virgin Money chief executive, told The Northern Echo its Newcastle workers’ diligence was providing fertile ground for the company’s expansion.

Hailing its 2,000-strong team, she said the lender has so far evaded any Brexit “wobble”, adding gross mortgage lending and credit card balances were both higher in the nine months to September 30.