By Reuters Staff
2 Min Read
Feb 26 (Reuters) - The British government on Friday completed the 5 billion pound ($6.96 billion) sale of the final chunk of its ‘bad bank’ comprising failed lenders Bradford & Bingley and Northern Rock, which were nationalised because of the 2007-09 financial crisis.
UK Asset Resolution (UKAR), owned by the Treasury, was set up to manage more than 100 billion pounds of assets from the two collapsed lenders.
UKAR’s last remaining assets will be sold to a consortium of Davidson Kempner Capital Management and Citibank.
The British government separately owns a 62% stake in retail lender NatWest Group, previously named Royal Bank of Scotland. The government has struggled to reduce its holding since the bank’s crisis-era bailout.
Government sells last stakes in Bradford & Bingley and Northern Rock
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Government completes final £5 billion sale of Bradford & Bingley plc and NRAM Limited
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Date Time
UK Government completes final £5 billion sale of Bradford & Bingley plc and NRAM Limited
This final sale constitutes a significant milestone in the work to achieve the government’s objective of returning the institutions brought into public ownership as a result of the 2007-2008 financial crisis to private ownership.
The sale was approved following a competitive auction process and will see Bradford & Bingley (B&B) and NRAM, together with their remaining mortgages and loan portfolios, sold to a consortium comprising Davidson Kempner Capital Management LP (Davidson Kempner) and Citibank (Citi). The majority of the financing for the transaction is being provided by funds managed by Pacific Investment Management Company LLC (PIMCO).