B&B nationalisation is confirmed

29 09 2008

I’m glad my mortgage is not with B&B:

Mortgage lender Bradford & Bingley (B&B) is to be nationalised, the government has confirmed.

Under the arrangement, the government will take control of the bank’s £50bn in mortgages and loans. Shares in the company have been suspended.

B&B’s £20bn savings business and branch network will be bought by rival Abbey, which is in turn owned by Spanish banking group Santander.

B&B is the latest bank to fall victim to the crisis in the financial sector.

“Following recent turbulence in global financial markets, Bradford & Bingley has found itself under increasing pressure as investors and lenders lost confidence in its ability to carry on as an independent institution,” said the Treasury.

more from the bbc website : http://news.bbc.co.uk/1/hi/business/7641193.stm

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2 responses

29 09 2008
UK Voter

From what I can see, the UK government has passed over the profitable side of Bradford & Bingley to the Spanish owned bank ‘Abbey’ whilst leaving the British taxpayer with just the bad mortgage debt. What was the point in getting rid of depositors money which has traditionally been used to offset mortages? Looks like a very poorly though out deal to me and somebody needs to explain why!

24 10 2008
simonsteed

Thanks

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