Partner Article

NRAM and B&B to merge

The Government is to merge Northern Rock Asset Management (NRAM) with another bank part-owned by the taxpayers, it has been announced.

Northern Rock Asset Management and Bradford & Bingley, which are now both run off mortgage books, will come under a single holding company, UK Financial investments said.

The merger will be an extensive process and no timescale for its completion has been set.

Gary Hoffman, CEO of Northern Rock (Asset Management) plc said: “This is the next step on the journey for Northern Rock (Asset Management).

“We are pleased to have reached agreement with UKFI and Bradford & Bingley as to how we can move forward together, to deliver maximum value for the taxpayer.

“It also represents an important step towards complete separation of the Northern Rock business, following the legal and capital restructure on 1 January. We are continuing to make good progress against our overall business plan.”

Northern Rock was nationalised in 2008 and posted reduced losses of £257m in 2009, compared to £1.4bn losses the previous year.

This was posted in Bdaily's Members' News section by Ruth Mitchell .