In the News - Bradford & Bingley

B&B mortgages nationalised and savings bought by Santander

The latest development in the financial crisis is that Bradford & Bingley (B&B) has been nationalised by the Government. Late last week B&B announced plans to reduce its mortgage lending business (reported 'In the News'). However now the Government is taking over B&B's mortgage business, assuming £40 billion of debt. B&B is the second mortgage business to be nationalised following Northern Rock earlier in the year (reported 'In the News').

B&B's saving business is being sold to the Spanish bank Santander. Santander own Abbey and have recently announced the acquisition of Alliance & Leicester (reported 'In the News'). Under the deal, the B&B brand will remain and the 2.7 million B&B customers should continue to use their existing telephone, internet and branch channels as usual.

(Sources: Times Online Guardian.co.uk Telegraph.co.uk)

Posted by Plebble Admin at 09:40 on 29-Sep-2008