LBG bank reveals sale of US mortgage-backed assets

LBG bank reveals sale of US mortgage-backed assets

Lloyds Banking Group has sold US mortgage-backed securities for pound sterling3.3 billion ($5.0 billion, 3.8 billion euros), boosting its capital funds in the process, the British state-rescued lender said on Friday.

Lloyds Banking Group has sold US mortgage-backed securities for £3.3 billion ($5.0 billion, 3.8 billion euros), boosting its capital funds in the process, the British state-rescued lender said on Friday.

The sale is part of a programme to sell non-strategic assets and the proceeds will be used to strengthen its capital by pound sterling1.4 billion, LBG said.

"Lloyds Banking Group plc announces today that it has agreed the sale of a portfolio of US RMBS (residential mortgage backed securities) to a number of different institutions for a cash consideration of pound sterling3.3 billion," LBG said in a statement.

"The transaction is part of the Group's continued capital accretive non-core asset reduction," added the lender that is 39-percent owned by the British government after a state bailout in the wake of the 2008 global financial crisis.

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