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Failed mortgage venture costs B&B £10m

Bradford & Bingley is writing off £10m to end its European joint venture with software firm Alltel, claiming the mortgage outsourcing deal has failed to deliver.

Alltel and B&B entered an agreement to develop and sell new mortgage service systems two years ago. But B&B is bringing the servicing of its own borrowers back in house, blaming uncertainty created by changing UK mortgage regulation and slow development of the European outsourcing market.

B&B announced the scrapping of the project last week and outlined how it was negotiating with Alltel to terminate the deal, a move it expects will incur further charges once complete.

But B&B says analysts still predict it will make a £265m profit during 2002, up from £234m in 2001.

However, rival outsourcing company Homeloan Management refutes B&B&#39s claim that there has been slow growth in the industry or that regulation is a barrier to growth and says it has seen significant growth this year.

B&B group chief executive Christopher Rodrigues says: “The discontinuation of our joint venture with Alltel will not impact on customers and will prevent future losses.”


Anger over commission to look at compulsion

The Government is establishing an independent pension commission to look at compulsion chaired by former CBI director general Adair Turner.The move has been att-acked by Opposition MPs and some IFAs, who claim the Government is trying to bury the issue. The commission&#39s remit will be to make recommendations to ministers although they do not have […]

ABI urges fundamental pension reform

The ABI has urged the government to make lasting changes to the pensions landscape in the green paper, due to be unveiled tomorrow.The association has developed five tests which the industry will use to judge the green paper based on: provision for the self-employed, flexibility, simplicity and choice, incentives, simplification of the tax regime and […]

Soft furnishings

Do you agree with the CML&#39s prediction that the housing market is “more likely to experience a soft landing than a sharp shock” in its forecasts for 2003 and 2004?Aitken: All markets are cyc-lical and subject to fluctuating investor confidence, and the property market is no exception. However, it is hard to disagree with the […]

Pensions admin company MNPA appoints new board members

Pensions administration provider MNPA, a subsidiary of Merchant Navy Officers Pension Fund, has appointed two non-executive directors, John Finan and John Edler as non-executive directors. MNPA says Finan has had a long career in financial services and from 1992 he was chairman and chief executive of Winterthur Life UK. Edler joins MNPA from Hays Commercial […]

Where next for the price of oil?

Having stabilised at around $65 a barrel, many investors are questioning if the price of oil will rise, and when. Richard Hulf provides his view. Richard Hulf, manager of the Artemis Global Energy Fund, sets out his thoughts about how the oil price may move through the next six months. At the start of the […]


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