Northern Rock £2.2bn assets sale agreed
NORTHERN Rock said today it has agreed to sell £2.2 billion of its mortgage assets to a US investment bank.The troubled lender said it would use the funds, which represent 2 per cent of the bank's total assets, to reduce the £25 billion-plus of emergency loans from the Bank of England.
NORTHERN Rock said today it has agreed to sell £2.2 billion of its mortgage assets to a US investment bank.
The troubled lender said it would use the funds, which represent 2 per cent of the bank's total assets, to reduce the £25 billion-plus of emergency loans from the Bank of England.
Northern Rock said the price Wall Street giant JP Morgan is paying represents a 2.25pc premium over the value of the assets - or £50 million.
The lender had to turn to the Bank of England in September last year when its business model collapsed amid the global credit crunch. The Government is trying to find a buyer for the bank.
You may also want to watch:
Chief executive Andy Kuipers said the sale agreement was a "positive development" for the bank.
“This is a relatively small transaction, representing around 2pc of Northern Rock's gross assets, but it is a positive development in the company's ongoing strategic review,” he said.
- 1 Man pulled into car before being beaten and robbed in Ipswich
- 2 Farmfoods set to move in as Aldi confirms closure of store on Ipswich estate
- 3 Police want to trace man in connection with Waterfront sexual assault
- 4 Man and woman arrested after Ipswich stabbing
- 5 Suffolk coast flood alert issued including Felixstowe and Ipswich
- 6 Pair who hid murderer are among trio jailed for running drug syndicate
- 7 Is a new tenant lined up to move into Ancient House in Ipswich?
- 8 70-year-old woman arrested in connection with human trafficking offences
- 9 Pictures show flooding along Suffolk coast
- 10 Could Ipswich Debenhams become hub for health and leisure?