Bradford & Bingley is nationalised

By Russell Lynch, PA
Monday, 29 September 2008
While the mortgage side of B&B is being nationalised, the Spanish bank Santander confirmed that it would buy the £20bn savings business

While the mortgage side of B&B is being nationalised, the Spanish bank Santander confirmed that it would buy the £20bn savings business
Crisis-hit mortgage lender Bradford & Bingley was today nationalised and a new savings giant created in the latest upheaval for the British banking sector.

The Government has taken B&B’s £41bn loan book on to the public balance sheet and guaranteed around £9bn in other commitments related to the bank.

The move follows Northern Rock’s nationalisation in February, which has added £87bn in debt.

B&B’s savings business and its branches – with 2.7 million customers and £20bn in deposits – have been sold to Spanish bank Santander for £612m.

Santander owns Abbey and recently agreed to buy Alliance & Leicester – so the deal will give it 1,286 branches and a 10 per cent share of the UK retail savings market.

The deal comes just two weeks after a £12.2bn rescue takeover of Halifax Bank of Scotland was announced.

Today’s break-up will mark a dramatic end to a business which can trace its roots back more than 150 years.

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