Bradford & Bingley (B&B) has sold two of its loan books to help it generate liquidity and invest in more profitable areas it was announced today.
The news sent B&B’s share’s up 6%, after a series of recent falls in its share price as analysts worried the bank might have funding problems. The bank has sold its housing association loan book to Dexia, a hedge fund, for £2.2bn, while its commercial property loans were sold to GE Real Estate for £2bn. The two loan books accounted for around £46m of group profits, though the firm will retain an £800m interest in commercial property loans. Bradford & Bingley says it has sold the loan books to allow it to focus on its more profitable business of residential mortgages and retail savings ac...
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