Dentons is pleased to have advised the UK's Financial Services Compensation Scheme (FSCS) on its recovery of £10.9 billion following the £11.8 billion sale by the UK Treasury of a portfolio of mortgages from nationalised British bank Bradford & Bingley to private equity firm Blackstone and insurer Prudential. The sale represented one of the largest government asset sales in Europe and has enabled the FSCS to recoup a significant portion of the money it was owed following the nationalisation of Bradford & Bingley during the 2008 financial crisis.
Dentons acted for FSCS, the UK Deposit Guarantee Scheme, in the 2008 nationalisation of Bradford & Bingley, when FSCS rescued over three million depositors by advancing £15.65 billion to finance the transfer of the Bradford & Bingley deposit book to Santander. The Firm has continued to advise FSCS on recoveries from Bradford & Bingley since the rescue, culminating in the £11.8 billion transaction announced by the UK's Chancellor of the Exchequer Philip Hammond on 31 March 2017. FSCS will receive £10.9 billion of the sale proceeds. Further portfolio sales are anticipated.
Neil Griffiths, Co-Head of the Restructuring and Insolvency Group at Dentons, who has advised FSCS since 2008, commented, "This transaction marks a significant step forward in recovering taxpayer money following the government-led bailouts of banks and financial institutions that took place during the global financial crisis. The sale will enable FSCS to repay a large part of its loan from HM Treasury, which was used to rescue millions of depositors during the crisis, benefiting taxpayers and FSCS levy payers. We are pleased to have assisted FSCS on this matter and look forward to helping it recover the remaining money it is owed."
Dentons partner Neil Griffiths has advised the FSCS on this matter from its inception. Amongst others, partner Richard Caird, senior associate Katharine Harle, and associates Meenaa Azmayesh and Jonathan Sears were involved in work leading up to the recent portfolio sale.
