|Government sells B&B loans for ‘excellent value’ £12bn:
The Treasury will net £11.8 billion from the agreed sale of Bradford & Bingley loans it bought during the financial crisis.
UK Asset Resolution (UKAR), the body established to oversee the government’s stakes in bailed-out banks, has struck a deal to sell the portfolios to Prudential and assorted Blackstone funds.
The body described the price as ‘at the upper end of expectations’ and ‘excellent value’. A second tranche of loans will be sold later with a view to repaying the remainder of the loan by March 2018.
Chancellor Philip Hammond said: ‘The sale of these Bradford & Bingley assets for £11.8 billion marks another major milestone in our plan to get taxpayers' money back following the financial crisis.'
Today’s sale is the first in the programme. The programme of sales is expected to conclude in full before the end of 2017-18.
UKAR has also been significantly reducing its stake in Lloyds, which is now below 3%, but problems at RBS, which announced an eighth consecutive year of losses earlier in 2017, have meant its stake in the Scottish bank remains above 70%.
In my good opinion the profit the Government is making from the sale(s) of the B&B loan book are being used to pay for the losses made from the virtual take over of RBS which the Government are sitting on huge losses with instead of being returned to us, the B&B shareholders.
In otherwords it seems to me that the B&B shareholders are paying for the mistakes made by the BOD of RBS and the Government taking it over as being ´Too Big to fail.´
If I had been in the Government shoes I would have wrapped up the good parts of RBS into NatWest and given RBS shareholders 1 new NatWest share for every RBS share held and to let the rest of RBS go bankrupt would in my opinion have been the good and right thing to do.
The Governemnt is expect to break even when it comes to Lloyds.|
|PVB - The analogy I would use is from the wilds of Scotland I drive 500 miles in my car. The speed limit is 60mph which I keep too all the way. However I suddenly get stopped by the police who said I broke the speed limit in the last mile. I said that the sign says the speed limit is 60mph, the police say they do not care what the sign says and that the spped limit for the last mile is actually 50mph.|
|pvb - In the first Santander final financial report after they took over the B&B deposit book and retail outlets they reported the B&B part separately and the bad bank also reports the B&B mortgage books separately and both reported as beingly highly profitable.
In my good opinion your analogy of comparing B&B to a car breaking the speed limit for 1 mile is just plainly unintlligent and not well thought out.
Most if not all companies have made an odd year of losses. In B&B´s case the year before they were highly porfitable and the year after they were also highly profitable.
The police act on behalf of the powers to be, to keep them in power therefore no point in going to them.
As for the courts, the way the rails are laid is the way the train will go and it was the Government who laid the tracks for the direction the courts must see what happened when it comes to B&B.|
|As far as I am concerned what happen at B%B was quite simply Fraud and therefore Illegal.
OK. Then report the "fraud" to the police, who will take action accordingly. But this has already been through the courts, hasn't it? So...
Except for the one year where B%B was liquidated, both the morgatage book and the retail and deposits have been well into profit by the tune of £100´s of millions.
Let's use a (very) rough analogy. From the wilds of Scotland you drive 500 miles home in your car. You keep to all speed limits for the first 499 miles. In the last mile to your home you break the speed limit and get a ticket. Should you (a) Have got a speeding ticket? OR (b) Not have got a speeding ticket because you did not break the speed limits in the preceding 499 miles?|
|mr hangman, yes you can have it back use your cash back button, you might lose a little but not the lot lol|
|As far as I am concerned what happen at B%B was quite simply Fraud and therefore Illegal.
Except for the one year where B%B was liquidated, both the morgatage book and the retail and deposits have been well into profit by the tune of £100´s of millions.|
|But this was not lost, was taken from us, big difference.|
|I've lost some money in the bookmakers this morning, can i have it back ?|
|Yup, we were stitched up, obvious to anyone, and anyone who says otherwise, knows nothing about what went on, before and after B&B was nationalised.|
|Day - I agree. Mr Pym was a senior director of Santander. He became CEO of A&L which he sold on the cheap to Santander. He then immediately became CEO of B&B where he signed off on the Rights Issue, stating that B&B had the second highest tier 1 capital ratio and sufficent money to pay for 18 months worth of mortages going forward, then a month later he put B&B into liquidation selling of its deposit book and retail outlets to guees who??? Santander. The B&B mortgage book was rolled up into the so called bad bank and guess who became the CEO of the bad bank, none other then Mr Pym.
I am sorry to say in my opinion the whole thing Stinks to high heaven.|
|I'm going to burst out crying in a minute|
|Course there a risk, but these shares were taken from us, when all the other banks got saved, and they were in a worse state then us.|
|Spot on pvb|
|Equities are a risk investment folks. Get used to it! Move on, FFS!
If you can't accept this my advice is: Don't invest in shares.|
|When it comes to the health service I was astounded to see how many immigrants go to the doctors because doctors are professionals asking them for immigration advice or other non-medical related advise.
Around 75% of all health related visits to the doctors are due to stress, giving the pensioners £100mln for their B&B shares will reduce their stress and therefore reduce the number of visits to the helath serivce - a Win/Win situation.|
|With a health service on it's final legs, the goverment really has not got a better home for £100m then making shareholders in banks happy LMAO|
|I agree with those who say it is the pensioners who have really lost out here. When B&B went into liquidation it had one of the largest number of share holders, around 960,000 many of these where pensioners who had holdings of less than 2,000
When B&B first went into liquidation I wrote to the powers to be and I´ve posted on this thread that I feel the most fair and reasonable thing for the government to do is to pay 55p per share, the price of B&B´s Rights Issue, upto a maximum of 2,500 shares on anyones holdings.
This would mean that over 650,000 share holders will get their entire share holding in B&B compensated for at 55p per share which I understand will cost around only £100mln and will make many people happy with the final out come.|
|debbie , yes many will have gone to their graves and more will follow before that elusive justice prevails. I wonder how much consideration is given to this in 'the master plan'|
|Thankyou birchin I imagine if many holders were pensioners that some have gone to their graves without justice.
Lets hope one day justice will prevail.|
Latest News Summary. 25/2/2017. This note gives the latest news about this campaign: Update_024. There is also the latest summary of past events here: BB-Summary. There are also recent letters to the Parliamentary Ombudsman and the Information Commissioner here: Campbell-Letter and Denham-Letter
|Blackstone and Prudential have been picked as preferred buyers for a £12.5 billion state-owned book of former Bradford & Bingley mortgages, one of the largest asset sales by a government in Europe.
The US private equity firm and UK-based FTSE 100 insurance group have been chosen from a range of bidders to acquire the portfolio of buy-to-let mortgages, according to people involved in the discussions.
The sale process, run by UK Asset Resolution (UKAR) on behalf of the government, comes more than a year after a record-breaking £13 billion sale of former Northern Rock mortgages to private equity firm Cerberus.
Blackstone has been selected to buy the bulk of the portfolio, which includes performing loans, while Prudential bid for about £3 billion.
The government is offloading the buy-to-let mortgages issued by Bradford & Bingley before its collapse and subsequent rescue by the taxpayer in the 2008 financial crisis.
Prudential, which has one of the biggest annuity books in the UK, is interested in buy-to-let mortgages as the assets could be used to back long-term liabilities such as annuities and with-profits policies.
Large UK banks refrained from bidding, in part due to recent scrutiny from regulators of their exposure to buy-to-let mortgages.
Ray Boulger, of broker John Charcol, said: “Virtually the whole portfolio is on a tracker rate because anyone who took a deal will have come off and are now paying only bank rate plus 1.75 per cent.
“This will mean if bought by private equity, then they normally are going to be looking for a higher return, therefore it wouldn’t surprise me if they bought at a discount.”
Mr Boulger added: “Anyone looking to expand in a flat mortgage market has to be aggressive in acquiring mortgages, either through lending to customers at a competitive rate or by buying an existing book.”|
|But does not seem, as yet, to apply to RBS retail investors:
"Two other groups of shareholders suing RBS will not be part of the settlement.
These are the RBoS Shareholder Action Group, representing 27,000 retail investors, which has vowed to ensure that the bank's former top executives appear in court, and the RBS Rights Issue Action Group, which is being represented by law firm Leon Kaye."|
|Would be great if we did get something back, but we were not state backed, even thou we should have been.|