Tuesday 6 December 2016

The vultures are coming to do the dirty work

Published 26/05/2016 | 02:30

'By putting the book up for sale, Ulster Bank has made it clear that it does not want to be the one that has to face the music and dance'. Photo: PA
'By putting the book up for sale, Ulster Bank has made it clear that it does not want to be the one that has to face the music and dance'. Photo: PA

The decision by one of our leading banks to sell a loan portfolio which includes home loans means there will be trouble ahead. By putting the book up for sale, Ulster Bank has made it clear that it does not want to be the one that has to face the music and dance.

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Instead, the bank expects to get a vulture fund to take over a loan book that it values at €2.5bn and let it deal with the messy business of repossessions and asset recovery.

It is the first mainstream bank to do this, but expect others to follow. AIB has already floated the idea this week of selling off some of its distressed loans in a move that was seen as a testing of the waters.

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