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| Version 3 | Version 4 |
|---|---|
| Treasury to nationalise B&B bank | Treasury to nationalise B&B bank |
| (10 minutes later) | |
| Troubled bank Bradford & Bingley is to be nationalised, the BBC has learned. | 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. | 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. |
| BBC News business editor Robert Peston says the Treasury will almost instantaneously sell to a bank, or a number of banks. | BBC News business editor Robert Peston says the Treasury will almost instantaneously sell to a bank, or a number of banks. |
| B&B's share price has plummeted and it has announced plans to cut 370 jobs due to the downturn in the mortgage market. | B&B's share price has plummeted and it has announced plans to cut 370 jobs due to the downturn in the mortgage market. |
| Home loans | Home loans |
| The bank will be nationalised using special legislation the Treasury put through when it took Northern Rock into public ownership earlier this year. | The bank will be nationalised using special legislation the Treasury put through when it took Northern Rock into public ownership earlier this year. |
| The measure is expected be announced on Sunday night or Monday morning. | The measure is expected be announced on Sunday night or Monday morning. |
| We can assure customers that their deposits are safe with Bradford & Bingley Tony McGarahanBradford & Bingley spokesman class="" href="http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/09/bb_to_be_nationalised.html">Robert Peston's blog | |
| The Treasury and FSA will negotiate with banks interested in buying parts of B&B. Possible buyers included Santander of Spain, HSBC and Barclays. | The Treasury and FSA will negotiate with banks interested in buying parts of B&B. Possible buyers included Santander of Spain, HSBC and Barclays. |
| Santander, which already owns Abbey and Alliance & Leicester, has been looking at B&B for some time. | Santander, which already owns Abbey and Alliance & Leicester, has been looking at B&B for some time. |
| 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. | 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. |
| Credit rating | Credit rating |
| The bank experienced significant withdrawals of cash from its branches and online bank on Saturday amid customer concerns about its situation. | 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. | 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. | However, B&B's shareholders and holders of its subordinated debt may lose out. |
| Our correspondent says the nationalisation and break-up of B&B represents a momentous event in the history of British banking. | Our correspondent says the nationalisation and break-up of B&B represents a momentous event in the history of British banking. |
| He said: "It will mean that every building society that floated on the stock market in the wave of demutualisations of the past two decades will either have collapsed or been sold to a conventional bank." | He said: "It will mean that every building society that floated on the stock market in the wave of demutualisations of the past two decades will either have collapsed or been sold to a conventional bank." |
| B&B was perilously close to seeing a demand from investors for the return of billions of pounds, which it would have been unable to find. | B&B was perilously close to seeing a demand from investors for the return of billions of pounds, which it would have been unable to find. |
| Credit rating agencies had been downgrading the rating of its covered bonds, a form of funding which involves packaging up mortgages for sale to investors. | Credit rating agencies had been downgrading the rating of its covered bonds, a form of funding which involves packaging up mortgages for sale to investors. |
| Bradford & Bingley spokesman Tony McGarahan said discussions were taking place and an announcement would be made before the Stock Market opened on Monday. | Bradford & Bingley spokesman Tony McGarahan said discussions were taking place and an announcement would be made before the Stock Market opened on Monday. |
| "We can assure customers that their deposits are safe with Bradford & Bingley," he said. | "We can assure customers that their deposits are safe with Bradford & Bingley," he said. |
| Do you bank with Bradford and Bingley? Are you an employee? What are your thoughts about this news? Send us your comments using the form below. | Do you bank with Bradford and Bingley? Are you an employee? What are your thoughts about this news? Send us your comments using the form below. |