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The BBC reports that Treasury to nationalise B&B bank
Troubled bank Bradford & Bingley is to be nationalised, the BBC has learned.
Officials from the Treasury and the Financial Services Authority (FSA) have been in talks with executives from the bank in a bid to secure its future.
…B&B’s £50bn of loans, including £41bn of home mortgages, will not be sold and will be nationalised on a long-term basis. The mortgages may be given to the nationalised Northern Rock to manage.
The bank experienced significant withdrawals of cash from its branches and online bank on Saturday amid customer concerns about its situation.
The Treasury’s decision to sell B&B’s savings business means that depositors and savers’ money should be safe.
However, B&B’s shareholders and holders of its subordinated debt may lose out.
The £50bn is more that $92 billion. More from Robert Peston, BBC Business editor.
