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| B&B nationalisation is confirmed | B&B nationalisation is confirmed |
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| Mortgage lender Bradford & Bingley (B&B) is to be nationalised, the government has confirmed. | Mortgage lender Bradford & Bingley (B&B) is to be nationalised, the government has confirmed. |
| The government will take control of the bank's £50bn mortgages and loans, while B&B's £20bn savings unit and branches will be bought by Spain's Santander. | The government will take control of the bank's £50bn mortgages and loans, while B&B's £20bn savings unit and branches will be bought by Spain's Santander. |
| Chancellor Alistair Darling said investors had lost confidence in B&B and the government was moving to stabilise the wider financial sector. | Chancellor Alistair Darling said investors had lost confidence in B&B and the government was moving to stabilise the wider financial sector. |
| He also said that taxpayers were being protected from any B&B losses. | He also said that taxpayers were being protected from any B&B losses. |
| 'Lost confidence' | 'Lost confidence' |
| "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. |
| Alistair Darling: Measures are in place to protect the taxpayer | Alistair Darling: Measures are in place to protect the taxpayer |
| 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". |
| Prime Minister Gordon Brown said the move showed the government would "do whatever it takes to ensure the stability of the British financial system". | |
| 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". |
| Chancellor Alistair Darling told the BBC that the government had moved to nationalise B&B "to provide the stability" that the UK financial sector needs. | Chancellor Alistair Darling told the BBC that the government had moved to nationalise B&B "to provide the stability" that the UK financial sector needs. |
| Mr Darling added that under B&B's nationalisation, taxpayers were protected from any losses because of the Financial Services Compensation Scheme. | Mr Darling added that under B&B's nationalisation, taxpayers were protected from any losses because of the Financial Services Compensation Scheme. |
| For taxpayers to lose a penny Bradford & Bingley's future losses would have to be unthinkably huge BBC business editor Robert Peston Read Robert Peston's blogQ&A: Bradford & Bingley bail-outSend us your comments This means that if B&B's remaining assets prove insufficient, the balance will ultimately be paid by the wider UK banking sector, although Mr Darling said that possible scenario remained a long way down the line. | For taxpayers to lose a penny Bradford & Bingley's future losses would have to be unthinkably huge BBC business editor Robert Peston Read Robert Peston's blogQ&A: Bradford & Bingley bail-outSend us your comments This means that if B&B's remaining assets prove insufficient, the balance will ultimately be paid by the wider UK banking sector, although Mr Darling said that possible scenario remained a long way down the line. |
| "We are not going to do that immediately, because in the current climate that would be absolutely daft," said the chancellor. | "We are not going to do that immediately, because in the current climate that would be absolutely daft," said the chancellor. |
| "But it does mean that in future, as things get better, if there is a shortfall then we will collect it from the industry." | "But it does mean that in future, as things get better, if there is a shortfall then we will collect it from the industry." |
| Shadow Chancellor George Osborne told the BBC that he would study the exact details of the deal, but that protecting taxpayers had to be the main priority. | Shadow Chancellor George Osborne told the BBC that he would study the exact details of the deal, but that protecting taxpayers had to be the main priority. |
| 'Good news' | 'Good news' |
| Abbey, which is part of Spanish banking group Santander, is paying £612m to buy B&B's savings business and 197 branches. | Abbey, which is part of Spanish banking group Santander, is paying £612m to buy B&B's savings business and 197 branches. |
| Abbey chief executive Antonio Horta-Osorio said the acquisition of B&B's bank's savings account was "good news" for customers. | Abbey chief executive Antonio Horta-Osorio said the acquisition of B&B's bank's savings account was "good news" for customers. |
| "They can be certain that their hard-earned savings are with a bank they can trust." | "They can be certain that their hard-earned savings are with a bank they can trust." |
| To help facilitate Abbey's takeover of B&B's savings business and branches, it has been paid £14.6bn from the Financial Services Compensation Scheme - funded by the Bank of England - and a further £4.5bn from the Treasury. | To help facilitate Abbey's takeover of B&B's savings business and branches, it has been paid £14.6bn from the Financial Services Compensation Scheme - funded by the Bank of England - and a further £4.5bn from the Treasury. |
| This £19.1bn is to guarantee that Abbey could pay back all B&B savings account customers, if need be. | This £19.1bn is to guarantee that Abbey could pay back all B&B savings account customers, if need be. |
| The government says it will get the money back - starting with the Treasury's £4.5bn - following the redemption and sale of B&B's mortgages, that are now in public hands. | The government says it will get the money back - starting with the Treasury's £4.5bn - following the redemption and sale of B&B's mortgages, that are now in public hands. |
| A spokeswoman for Abbey said while it was "business as usual" for B&B's branches, it was too early to say whether any would close in the long term. | A spokeswoman for Abbey said while it was "business as usual" for B&B's branches, it was too early to say whether any would close in the long term. |
| However, with Santander already owning both Abbey and Alliance & Leicester, it appears likely that there will be some branch closures. | However, with Santander already owning both Abbey and Alliance & Leicester, it appears likely that there will be some branch closures. |
| B&B currently has about 3,000 staff. | B&B currently has about 3,000 staff. |
| Funding problems | Funding problems |
| 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. | 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. | Speculation had intensified in recent weeks that B&B was approaching a funding crisis, leading to a growing number of customers withdrawing their funds. |
| B&B got itself into financial difficulty as a result of the credit crunch removing the option of raising funds through the global wholesale money markets. | B&B got itself into financial difficulty as a result of the credit crunch removing the option of raising funds through the global wholesale money markets. |
| Its problems were then further intensified by its focus on the buy-to-let market, which has seen a large rise in bad debts as UK house prices have fallen. | Its problems were then further intensified by its focus on the buy-to-let market, which has seen a large rise in bad debts as UK house prices have fallen. |
| B&B has also struggled to fund a number of takeovers. | B&B has also struggled to fund a number of takeovers. |
| Do you have a buy-to-let mortgage with Bradford & Bingley? Are you a B&B investor or shareholder? Send us your comments using the form below: | Do you have a buy-to-let mortgage with Bradford & Bingley? Are you a B&B investor or shareholder? Send us your comments using the form below: |
| In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |