Cerberus secures”preferred bidder” status for Mortgage Express Loan Book
US firm Cerberus which have been accused of alleged bribery, conspiracy to defraud, blackmail, unethical practice, fraud etc. could get its hand on the Mortgage Express and Northern Rock loan portfolio.
Cerberus, named after the three headed dog of the underworld, are ruthless and allegedly employ their own commercial spying shop in London. They have managed to muscle out others in bidding for the HM Treasury book of loans to get “preferred bidder” status, something they have done before, and with that a vast proportion of Buy to Let landlord mortgage portfolios (Mortgage Express being for a long time the fastest and offering the best rated mortgages).
The current wheezes by UK investments to lighten the Buy to let portfolio would be nothing to a firm that bought Chrysler cars in the US and General Motors car financing arm, and allegedly blackmailed General motors by not providing finance. Nor the controversial buying of Leumi Bank from Israel.
HM Treasury could be conflicted and it has been suggested they are accounting blind. Selling an asset makes a person neither richer nor poorer, they just have their asset in a different form.
Collectively we all need to act now to save a decent asset in relatively trustworthy hands versus in American parlance a “bad actor” that may ruthlessly exploit British owners, businesses and the country for its own ends.
I suggest a swift campaign on HM Treasury and political parties and committees to throw out Cerberus as a bad actor from the process.
Gavin
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Previous Article
Thousands more homes to be developed in planning shake upNext Article
Replacing cross over lease with managment company?
Member Since May 2014 - Comments: 12
8:32 PM, 27th October 2015, About 10 years ago
OMG – the Mortgage Express nightmare gets worse. With the impending mortgage interest tax issue and MX working against landlords, what hope do we have.
I second campaigning HM Treasury.
Member Since June 2013 - Comments: 646 - Articles: 1
12:03 AM, 28th October 2015, About 10 years ago
http://www.cerberuscapital.com/?news=cerberus-leads-u-s-investors-gobbling-up-europes-bank-loans
Member Since August 2015 - Comments: 287
9:02 AM, 13th November 2015, About 10 years ago
the Cerberus deal has gone through – it is pretty complex and one can only wince at the thought of the professional fees involved on both sides
http://www.ukar.co.uk/media-centre/press-releases/2015/13-11-2015?page=1
also, the BBC is reporting that TSB is buying some of the loans from Cerberus
http://www.bbc.co.uk/news/business-34806370
as a taxpayer, I can only hope that Cerberus hasn’t found a way to make money on that part of the deal that UKAR should have / could have captured
Member Since July 2015 - Comments: 154
9:19 AM, 13th November 2015, About 10 years ago
The sale that has gone through appears to relate to Northern Rock and not Mortgage Express.
Member Since August 2015 - Comments: 287
7:53 PM, 13th November 2015, About 10 years ago
Jolyon Maugham questions the longer term UK tax implications of the Cerberus deal. As Mr Maugham QC knows a bit about tax, his view on such matters is an interesting one
http://waitingfortax.com/2015/11/13/so-just-how-good-is-that-cerberus-transaction/
Member Since August 2015 - Comments: 287
9:06 PM, 13th November 2015, About 10 years ago
I am also curious about how this £13bn sale only results in £5.5bn of the government loan getting repaid
Is it really as crude as Cerberus paying £5.5bn for £13bn face value loans?
If so, can I get some?
Member Since November 2015 - Comments: 4
12:00 PM, 16th November 2015, About 10 years ago
Typically as C have a bank they arrange for borrowing and only put in a little. Here it looks like TSB with in effect add in cash for part of it leaving the rest to ride almost for free. I expect this is channeled offshore and will cost another several billion in lost capital gains taxes. I expect that there were also rightoffs and various people inside of Northern Rock will find themselves out in the cold having facilitated a cut price sale. This is standard form sadly HM Treasury are so stupid or something else they get suckered each time/or scared and out outmaneuvered.