U.K. Government Sells GBP5.30 Billion of Nationalized Mortgages to Barclays-Led Group
April 26 2018 - 3:43AM
Dow Jones News
By Adam Clark
The U.K. Treasury said Thursday that it has sold two portfolios
of mortgages that were nationalized in the wake of the 2008
financial crisis for 5.30 billion pounds ($7.39 billion) to an
investor group led by Barclays PLC (BARC.LN).
The portfolios were acquired by the U.K. government in its
nationalization of the Bradford & Bingley bank. The government
said the proceeds from the sale will be used to repay the loan made
to Bradford & Bingley and therefore reduce the national
debt.
"We are determined to recover the money the taxpayer invested
during the financial crisis as soon as we can. The sale of these
Bradford & Bingley loans is yet another significant step in
putting the crisis behind us," said Chancellor Philip Hammond.
The mortgages are being sold to Barclays subsidiaries, which are
being provided with equity funding by the U.S.'s Pacific Investment
Management Company LLC, and debt financing from six of the
financial services institutions subject to the U.K.'s levy for
compensation payments.
The sale leaves the U.K. government managing GBP14 billion worth
of nationalized assets from the financial crisis, down from GBP116
billion in 2010.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
April 26, 2018 03:28 ET (07:28 GMT)
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