Struggling U.K. lender must buy toxic GMAC mortgages

Bradford & Bingley, the troubled UK lender, must buy $2.1 billion pounds worth of mortgages from GMAC as part of an agreement reached in 2006.  The purchase must be completed by the end of the year per the terms of the agreement.  The timing couldn't be worse for the UK lender, who is struggling to raise capital of its own to battle through the credit crunch. To add insult to injury the GMAC loans are performing much worse than those originated by Bradford & Bingley.  These are the types of agreements that can sink either bank.  If Bradford & Bingley can't come up with the cash they'll be in default of the agreement which could impact other GMAC agreements and its cash reserves. From Bloomberg on the ill-timed purchase: Bradford & Bingley