Yesterday we wrote how Bradford & Bingley appeared to be on the verge of going bust, and it seems that the Treasury are indeed now working towards a part-private sale part-nationalisation of the UK’s 8th largest bank.
The BBC reports that 200 of their branches will be sold, the savings business and other parts of the company will be sold off to other banks, leaving the mortgage business to be nationalised and possibly be looked after by Northern Rock.
It could possibly be seen as a middle way between the deals done for Northern Rock (completely nationalised) and Lloyds’ takeover of HBOS, which was brokered by the Government but was effectively a private sale.
For a good account of how things have progressed this weekend, read the follow blog posts from Robert Peston:
- 26th September 16:50 – B&B will be rescued soon
- 27th September 08:17 – How will B&B be rescued?
- 27th September 16:22 – B&B: taxpayers on hook for Â£40bn
- 27th September 19:41 – B&B to be nationalised
The deal is likely to be announced before the stockmarket opens tomorrow morning, and we’ll post more information when it becomes available.