News Categories

• Banking
• Breakdown Cover
• Car Insurance
• Credit Cards
• Home Insurance
• Insurance
• Life Insurance
• Loans
• Money
• Mortgages
• Pensions
• Pet Insurance
• Travel Insurance

News Archive

• May 2012
• April 2012
• March 2012
• February 2012
• January 2012
• December 2011
• November 2011
• October 2011
• September 2011
• August 2011
• July 2011
• June 2011

Newsletter

Govt confirms Bradford & Bingley nationalisation

By Sarah Engle, Mon 29 Sep 2008 - Published in Banking

The government has confirmed that troubled mortgage lender Bradford & Bingley will be nationalised.

According to a statement from HM Treasury, the bank's £20 billion savings unit and branches will be bought by Santander, which owns Abbey National, while the government will retain the £50 billion mortgages and loans business.

The Treasury revealed: "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."

It also said the government acted on the advice of the Financial Services Authority and the Bank of England to preserve the market's stability and protect the bank's depositors.

Bradford & Bingley said business should continue as normal, with mortgage customers able to make payments and with no changes to savings accounts, ATMs and online banking.

It was also revealed that the senior management team of the bank will remain in place while the transition takes place.