Government to restart sale of Bradford & Bingley loans

The government has resumed the sale of a failed bank’s £15.65 billion pound mortgage portfolio after it was delayed in the aftermath of the country’s vote to leave the European Union.

UK Asset Resolution, which is selling off the Bradford & Bingley loans, is planning to send out non-disclosure agreements to prospective bidders this week, the sources said.

This comes after the government put on hold plans to sell stakes in bailed-out banks Royal Bank of Scotland, Lloyds Banking Group and the Bradford & Bingley mortgage book in the aftermath of the Brexit vote because of market volatility.

UK Asset Resolution said in a statement “We have received the necessary approvals and can confirm that we have launched the first phase of a program of asset sales, this process remains commercially sensitive and there is nothing more we can say at this time.”

The government has so far only managed to recoup just over half of the £133 billion pounds it spent rescuing the banks.

Bradford & Bingley said last month it would borrow almost £3 billion pounds from the UK Treasury to replace expensive existing debts, paving the way for its sale to resume by making its assets more appealing.

 

 

 

 

 

 

 

Source: Reuters