Britain sells £4.9 billion of former Northern Rock mortgages to Citi

LONDON (Reuters) - A British government fund tasked with selling the assets of banks it bailed out during the 2008 financial crisis has sold 4.9 billion pounds worth of mortgages and loans from the failed Northern Rock to U.S. lender Citigroup.

UK Asset Resolution, set up to manage the government’s holdings of assets from the crisis-era bailouts, said bond investment fund PIMCO had provided the majority of the financing for the Citi-led deal.

The proceeds will go towards repaying loans that Britain’s finance ministry provided to Northern Rock during the crisis.