The U.S. isn't the only place with an ailing financial system. The U.K. is also having some problems.

Take a look at U.K. mortgage lender, Bradford & Bingley Plc. The firm was aggressive on high-risk mortgages, and, as a result, there has been a plunge in profits.

To deal with the precarious situation, Bradford & Bingley has agreed to a $353 million investment from TPG, which is a mega private equity firm. That represents about a 23% equity stake.

Unfortunately, the ailing housing market in the U.K. appears to be far from over. As a result, we'll likely see other capital infusions of financial services firms.

This is certainly good news for TPG. After all, the firm has a long history in restructurings as well as financial services (for example, TPG helped structure a variety of deals for failed S&Ls during the late 1980s).

In fact, TPG is in the process of raising a $7 billion fund for financial services firm.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

TPG looks for a sterling deal for UK mortgage player originally appeared on BloggingStocks on Mon, 02 Jun 2008 11:33:00 EST. Please see our terms for use of feeds.