Monday, July 4, 2011
Banks, including Lloyds and RBS, selling off their toxic loans to private equity companies -possibly a good deal if property prices continue to slide. In Lloyds' case, of Â£78bn of property loans on its books, one third, Â£26bn, are considered 'bad' One wonders if the private equity firms will as 'forbearing' over deferred payments as the state-backed bank. I suspect not. But, the discount the private equity firms will buy the loans at will, if they've done their sums right, allow them to foreclose that much quicker and without any government interferance. Expect more big name firms to close or downsize significantly, along with it the resultant redundancies, and a greater number of repossessions soon.