Bradford and Bingley bank, one of the UK’s banks who were responsible for the wide mis-selling of payment protection insurance policies and products throughout the 1980s, 1990’s and 2000’s – has nearly reached the stage where a takeover of it’s mortgage division, is about to occur.
Two banks, named in media reports as being, Prudential and Paragon bank are understood to have levied a bid of nearly £3 billion for the mortgage book and contracts of Bradford and Bingley bank, which is estimated to be at least worth £12.5 billion.
Bradford and Bingley bank is currently owned by the UK government.
Other companies which are rumoured to be a part of the takeover group include, US asset manager Pimco, private equity firms Blackstone and Cerberus and hedge funds CarVal, Elliott and Och-Ziff.
The website www.mortgagestrategy.co.uk revealed more about the upcoming deal:
Government body UK Asset Resolution is running the sale, and the deadline for bids is today. The results will be announced from next week.
UKAR has told bidders that it wants to sell the B&B mortgages to more than one group.
Elliott and Och-Ziff are bidding together, while CarVal, Paragon and Pimco have also joined forces.
The £12.5bn book forms part of a wider £16bn mortgage portfolio, with the additional £3.5bn being mortgages in default.
The Government bailed out B&B when the firm collapsed in 2008.