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The Uk Has Sold £13 Billion Of Northern Rock's Mortgages To The Us

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The UK government has sold off 115,000 Northern Rock mortgages it was forced to buy during the 2008 financial crisis to Cerberus, a US asset management firm.

The £13 billion ($19 billion) deal is the largest financial privatisation in UK history, Chancellor of the Exchequer George Osborne said on Friday.

"Today marks another major milestone in clearing up the mess left by the financial crisis, with the sale of former Northern Rock mortgages," Osborne said.

"The sale, which raises £13 billion for the British taxpayer, is the largest ever sale of financial assets by a British government, and we are now clear that taxpayers will get back more money from Northern Rock than they were forced to put in during the financial crisis," he said. [more at link]

http://www.businessinsider.com/uk-treasury-sells-13-billion-of-northern-rocks-mortgages-to-the-us-2015-11?IR=T&r=UK

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Hmmm...... If Cerberus are U.S., won't they have less compunction about repossessing homes and the negative publicity that sometimes accompanies that? Wouldn't like to be the holder of one of those mortgages.

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LOL, Family "silver"

Dirty laundry and dusty skeletons from family closets doesn't even begin to describe it. I look on this positively. For once, the government is not selling at the bottom.

£13bln, of which £3.5 bln was immediately sold to the Spanish. They only bought it because they needed to have a head-start with their new UK sub - so the dirtiest loans in the book will now be back as a UK risk, only on the commercial side.

Anyway, what is the bet that Cerberus kept the better loans and sold off the most dodgy 1/4?

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"The sale, which raises £13 billion for the British taxpayer, is the largest ever sale of financial assets by a British government, and we are now clear that taxpayers will get back more money from Northern Rock than they were forced to put in during the financial crisis," he said.

Give the UK people all the official details, all the official figures then - including all the off balance sheet stuff and the rest of the shenanigans.

Until then it just sounds like more dodgy political waffle.

Edited by billybong

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Give the UK people all the official details, all the official figures then - including all the off balance sheet stuff and the rest of the shenanigans.

Until then it just sounds like more dodgy political waffle.

BBC had a report on it on Friday - http://www.bbc.co.uk/news/business-34806376

In April, the National Audit Office estimated that the "peak support" received by Northern Rock from the government totalled £60bn.

It said that £25bn of that sum was still outstanding.

Even with today's sale, which brings that figure down substantially, the government still has some way to go to ensuring the taxpayer "gets their money back".

And, of course, that's not including any interest payments normally attached to loans and bailouts.

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Give the UK people all the official details, all the official figures then - including all the off balance sheet stuff and the rest of the shenanigans.

Until then it just sounds like more dodgy political waffle.

This of course is entirely correct ... last I heard (which was a couple of years ago) MBS were shaping up to be proper carry (i.e. money for nothing) as the governments were trying to maneouvre the embaressing shit off their books but had absorbed most of the actual losses with time and ZIRP bailing out a lot of the rest and in many cases the government fully underwriting any future potential loss resulting in a dead cert win for the investor (a lot of the trades I've seen are basically fraud).

That's why you could never ever invest in something like Cerebrus main fund because it's exclusively for the insiders insider (they will however have some dodgy fund investing in sludge you can put your money in if your a normal hedge fund investor I'm sure) ... free money like that doesn't get handed out to the proles, but you are allowed to see it as a lure to attract investors. The name is familiar though ... and I can't remember why!

Edited by Kinky John

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Sadly, I don't trust Osborne to get a good deal for the UK taxpayer so am suspicious of some kind of con. Still good to flush some of this turd away.

I suppose we'll be paying for it again when TSB chokes on its new acquisition.

He probably didn't.

The risk for him is zilch. He'll have the losses recorded and ready to throw, rightly, at Labour.

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