The Treasury says it will be business as usual for Bradford Bingley savers and borrowers
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.
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 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.