Bradford and Bingley to be nationalised
29 September 2008
UK mortgage lender Bradford and Bingley is to be nationalised, it was confirmed today.
The BBC reports that the government will take over the control of the £50 billion that the bank has in mortgages and loans, with the £20 billion savings business and branch network to be purchased by Abbey, which is owned by Spanish banking group Santander.
All shares in Bradford and Bingley are currently suspended, according to the broadcaster.
The Treasury has said that the bank found itself under increasing pressure following recent turbulence in the global financial markets - pointing out that both investors and lenders had "lost confidence in its ability to carry on as an independent institution".
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It went on to say that the move would ensure protection of people's saving and that all Bradford and Bingley branches, call centres and online services would be open for business as usual.
Reuters reports that in March 2006 Bradford and Bingley was valued at £3.3 billion - last Friday shares in the company were worth just 20p, with the bank as a whole worth less than £300 million.
