US private equity giant Cerberus has been accused of misleading the government on a deal to snap up £13bn worth of mortgages from bust lender Northern Rock.
Cerberus bought the huge loan book in 2016 from state-owned UK Asset Resolution (UKAR), the company set up by the Treasury to manage its ownership of failed lenders it took over during the financial crisis.
The US firm pledged to offer customers trapped on high interest mortgages a better deal and to transform itself into a ‘challenger bank’ in Britain, according to pitch documents seen by the BBC’s Panorama programme.
