18th Aug 2014 10:22
LONDON (Alliance News) - British high street banks are seeking to renegotiate the billions of pounds in emergency loans handed to Bradford & Bingley in 2008 in a bid to cut their interest burden, The Times reports Monday, citing senior industry executives.
Banks will have to pay more than GBP400 million in interest payments to the Financial Services Compensation Scheme in order to cover the cost of the bailout of the building society. But with rates expected to be hiked next year, banks including Barclays PLC and Lloyds Banking Group PLC are looking to restructure Bradford's debt to the state, owed from its nationalisation in 2008, the newspaper said.
Barclays and Lloyds are among the biggest contributors to the Bradford & Bingley loan and pay around GBP80 million per year to cover interest costs.
http://www.thetimes.co.uk/tto/business/industries/banking/article4179153.ece
By Sam Unsted; [email protected]; @SamUAtAlliance
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