View more on these topics

Pru buys £12bn Bradford & Bingley buy-to-let loan book

HM-Treasury-Front-700x450.jpg

The Government has agreed to sell its Bradley & Bingley loan book for £11.8bn to Prudential and to funds managed by US private equity firm Blackstone.

The portfolio of mortgages was acquired by taxpayers during the financial crisis.

The Government says the £11.8bn price reflects the “strong credit quality of the portfolio and the outcome of a highly competitive sale process”.

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.

UK Asset Resolution manages B&B and Northern Rock Asset Management’s closed loan books on behalf of the taxpayer.

The Treasury statement says following today’s deal, UKAR’s balance sheet now stands at £22bn, down from £37bn in September 2016 and from £116bn in 2010.

Chancellor Philip Hammond says: “The sale of these B&B assets for £11.8bn marks another major milestone in our plan to get taxpayers’ money back following the financial crisis.

“We are determined to return the financial assets we own to the private sector and today’s sale is further proof of the confidence investors have in the UK economy.”

In last year’s Budget, the Government said it would look into a sales programme to raise enough money for B&B to repay the £15.65bn debt to the Financial Services Compensation Scheme and the loan from the Treasury. This sale is the first in the programme.

The programme of sales is expected to finish before the end of 2017/18.

Recommended

Prudential-Logo-700x450.jpg

Pru bids for £3bn B&B buy-to-let loan book

Prudential is bidding for a £3bn tranche of the £12.5bn book of Bradford & Bingley buy-to-let mortgages owned by the Government. The Financial Times reports the insurer is one of a group of bidders that include Paragon Bank, US asset manager Pimco, private equity firms Blackstone and Cerberus and hedge funds CarVal, Elliott and Och-Ziff. […]

FCA-FSA-Building-Sky-Contrast-700x450jpg

FCA fines ex-Bradford & Bingley finance director £30k

The FCA has fined former Bradford & Bingley group finance director Christopher Willford £30,000 for failings ahead of a rights issue at the height of the financial crisis. The regulator says Willford failed to provide the board with up-to-date information about B&B’s financial position. The final penalty has been reduced from £100,000 to £30,000 following […]

UK-Currency-Money-Pound-GBP-620x413.jpg

Old Mutual sells $446m stake in asset management arm

Old Mutual has agreed to sell a 24.95 per cent stake in Old Mutual Asset Management to HNA Capital US for $446m (£355m). Following the sale, Old Mutual’s shareholding will halve from 50.8 per cent to 25.9 per cent. The initial part of the transaction, expected to take place in 30 days subject to US […]

State of the markets: UK equity income

Artemis Income Fund manager Nick Shenton discusses the state of the UK equity income market with journalist Alexis Xydias. With the first three months of 2015 showing strong returns for both the Artemis Income Fund and UK markets generally, Nick Shenton discusses the fund’s top contributors – including overseas holdings Novartis and Bayer – and […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment