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| B&B nationalisation is confirmed | B&B nationalisation is confirmed |
| (10 minutes later) | |
| 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. | 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'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. | 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. | "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. |
| It added that the move would protect savers' money and that B&B's branches, call centres and internet operations would "be open for business as usual to provide continuity of service to customers". | It added that the move would protect savers' money and that B&B's branches, call centres and internet operations would "be open for business as usual to provide continuity of service to customers". |
| BBC business editor Robert Peston said it was a good deal for taxpayers, and that the risk was "quite close to nil". | BBC business editor Robert Peston said it was a good deal for taxpayers, and that the risk was "quite close to nil". |
| B&B is the second UK bank to be nationalised since the start of the global credit turmoil, following Northern Rock's move into state ownership in February this year. | |
| Speculation had intensified in recent weeks that B&B was approaching a funding crisis, leading to a growing number of customers withdrawing their funds. |