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Lenders tee-up £17bn Bradford & Bingley financing deal


Five British banks and a building society are reportedly offering around £17bn of financing in a bid to help the Government sell the remnants of Bradford & Bingley.

The Government has been seeking to dispose of assets acquired during the financial crisis, including auctioning a £13bn package of Northern Rock loans last year.

And now Sky News reports that six lenders are to present the Government with a proposal to establish a special purpose vehicle to house the loans ahead of a possible sale.

The banks – Barclays, HSBC, Lloyds, Santander and RBS – and Nationwide will reportedly offer £17bn of financing to the eventual purchasers of the loans as part of a project to end their own exposure to interest on the loans used to fund it during the financial crisis.

B&B interest last year alone totalled £400m, Sky News reports.

The Government bailed out B&B in 2008 at the height of the financial crisis, with its mortgage book, personal loan book, headquarters and wholesale liability coming into state ownership.

At the same time, Santander bought B&B’s retail deposit business and branches.



Treasury quizzed over Northern Rock assets sale

Treasury economic secretary Harriet Baldwin is facing questions from an influential committee of MPs over the sale of former Northern Rock assets. The Treasury announced a £13bn deal to offload a book of mortgages from the collapsed building society to US-based Cerberus Capital Management in mid-November. However, Treasury committee chairman Andrew Tyrie has now written […]


Treasury offloads £13bn Northern Rock mortgage book

The Treasury has announced a £13bn deal to sell a book of Northern Rock mortgages to US investment firm Cerberus Capital Management. The agreement to sell the mortgages, announced by UK Asset Resolution, means the Government has now disposed of over 85 per cent of the assets of Northern Rock. All proceeds from the sale […]


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