Deals
Citi to Buy Mortgages From U.K. Bad Bank for $6.4 Billion
- U.K. government says that Pimco will finance the transaction
- The deal follows sales to Cerberus, Blackstone in recent years
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Citigroup Inc. is paying 4.9 billion pounds ($6.4 billion) for residential mortgages and unsecured loans from the British government’s bad bank, in a major step to offloading the assets it took on at the peak of the financial crisis.
UK Asset Resolution Ltd., the government agency overseeing nationalized lenders, expects to complete the sale of two portfolios within the next few weeks, it said in a statement on Tuesday. Pacific Investment Management Co. is financing the transaction.