The UK Government has confirmed it completed the £5 billion sale of Bradford & Bingley plc and NRAM Limited (formerly Northern Rock) and their remaining loans, acquired by the taxpayer as a result of the financial crisis.
“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,” said a Treasury statement.
“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 and Citibank.
“The majority of the financing for the transaction is being provided by funds managed by Pacific Investment Management Company LLC (PIMCO).”
The UK’s Economic Secretary to the Treasury John Glen said: “This sale represents a major achievement.
“At last March’s budget we promised to finally return B&B and NRAM to private ownership and we have done just that.
“We are continuing to protect consumers while recovering significant amounts of the taxpayer money used to ensure financial stability during the financial crisis.”
Following the nationalisations of Northern Rock and Bradford & Bingley, UK Asset Resolution (UKAR) was formed in 2010 as a holding company for their closed mortgage books.
“Although this sale involves a change in ownership of B&B and NRAM, it will not result in customers moving to a new lender,” said the Treasury.
“When transfer of ownership is completed, B&B, NRAM and Mortgage Express will remain the legal title holders of the loans. Computershare will continue to service the loans.
“B&B, NRAM, Mortgage Express and Computershare are all regulated by the Financial Conduct Authority (FCA).
“This means that customers will continue to enjoy the protection of the FCA’s rules.”