AFP, London :
The British government announced Friday the sale of o11.8 billion ($14.7 billion, 13.7 billion euros) in loans that it acquired from bailed-out bank Bradford & Bingley during the global financial crisis.
The closed loans will be sold to insurance group Prudential and to funds managed by private equity giant Blackstone, the Treasury said in a statement.
“The sale of these Bradford & Bingley assets for o11.8 billion marks another major milestone in our plan to get taxpayers’ money back following the financial crisis,” said finance minister Philip Hammond.
Britain injected a total of o133 billion and provided over a trillion pounds in guarantees to prop up its banks in the three years to 2010, according to National Audit Office data.
The commercial banking sector also benefitted from the Bank of England’s record-low interest rates and vast lending stimulus, in place since 2009.
The government is now trying to wind down its holdings in various financial institutions, including Royal Bank of Scotland and Lloyds Banking Group, that were bailed out during 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,” said Hammond.
Bradford & Bingley was nationalised in 2008, with its deposits and branch network sold to Spain’s Santander Group. The mortgage book and investment portfolios remained in public hands.
The British government announced Friday the sale of o11.8 billion ($14.7 billion, 13.7 billion euros) in loans that it acquired from bailed-out bank Bradford & Bingley during the global financial crisis.
The closed loans will be sold to insurance group Prudential and to funds managed by private equity giant Blackstone, the Treasury said in a statement.
“The sale of these Bradford & Bingley assets for o11.8 billion marks another major milestone in our plan to get taxpayers’ money back following the financial crisis,” said finance minister Philip Hammond.
Britain injected a total of o133 billion and provided over a trillion pounds in guarantees to prop up its banks in the three years to 2010, according to National Audit Office data.
The commercial banking sector also benefitted from the Bank of England’s record-low interest rates and vast lending stimulus, in place since 2009.
The government is now trying to wind down its holdings in various financial institutions, including Royal Bank of Scotland and Lloyds Banking Group, that were bailed out during 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,” said Hammond.
Bradford & Bingley was nationalised in 2008, with its deposits and branch network sold to Spain’s Santander Group. The mortgage book and investment portfolios remained in public hands.
