TSB moves to snap up £16bn Bradford & Bingley portfolio
TSB has put an offer on the table for a £16bn mortgage loan portfolio which belonged to Bradford & Bingley.
The government has been slowly but surely selling the assets it picked up in the fallout of the financial crisis, which includes parts of Bradford & Bingley's business.
Now, the Sunday Times has reported UK Asset Resolution (UKAR), the organisation government set up to oversee the mortgage books of Bradford & Bingley and Northern Rock, could be picking the successful bidder for the portfolio shortly, and TSB will be up against competition from private equity bidders for the books.
Read more: Cleaning out the closet: 14 public assets to flog in the Autumn Statement
The Treasury announced it would be moving forward with ditching the £16bn worth of Bradford & Bingley mortgage assets last month, with chancellor Philip Hammond adding government was committed to recovering "all of the cash British taxpayers injected into the banking sector during the financial crisis". At the time, the sale was expected to complete by 2017-18.
Plans for the sale were initially announced in this year's Budget back in March, but June's Brexit vote put them on pause.
Bradford & Bingley was effectively split into two after it was rescued in 2008, with its savings business being bought by Santander and its loans book going to government.
Read more: London unlikely to lose out on euro clearing post-Brexit
TSB itself should be familiar with what the financial crisis did to the banking sector, as its own separation from Lloyds Banking Group was a requirement of the lender's state bailout deal. TSB was then purchased by Spanish Sabadell last year.
TSB declined to comment.