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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
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