Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

World Cup 2014: Germany-Brazil inspires the Web

Read more

THE INTERVIEW

Boutros-Ghali: 'I wanted to reform the UN'

Read more

IN THE PAPERS

57 000 little problems

Read more

IN THE PAPERS

The Sarkozy 'threat'

Read more

BUSINESS DAILY

Budget challenge for India's new government

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan? (part 2)

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan?

Read more

MEDIAWATCH

Israeli strikes on Gaza as seen on social media

Read more

INSIDE THE AMERICAS

World Cup humiliation for host nation

Read more

  • Germany asks US intelligence station chief to leave country

    Read more

  • Video: Muslims in China confront obstacles to Ramadan fasting

    Read more

  • Tour de France passes WWI Chemin des Dames battlefield

    Read more

  • French companies will have to accept anonymous CVs

    Read more

  • Israel steps up airstrikes as diplomacy gets under way

    Read more

  • Argentina beat Netherlands on penalties to reach World Cup final

    Read more

  • Foiled French jihadist ‘targeted Louvre and Eiffel Tower’

    Read more

  • Obama in Texas to urge congressional action on child migrant crisis

    Read more

  • Iraq’s heritage 'in danger' from ISIS militants

    Read more

  • Froome crashes out of Tour de France

    Read more

  • South Sudan independence heroes ‘have lost their way’

    Read more

  • 100 years on, the Tour de France returns to the Western Front

    Read more

  • Dozens of blindfolded bodies found south of Baghdad

    Read more

  • Both candidates say they won Indonesian presidential election

    Read more

  • Exiled Syrian opposition elects new president

    Read more

UK to nationalise Bradford & Bingley

©

Latest update : 2008-09-29

The UK will nationalise troubled mortgage lender Bradford & Bingley. The bank had announced on Thursday that it was cutting 370 jobs, mainly at its mortgage processing centre near London, in a bid to save 15 million pounds.

LONDON, Sept 27 (Reuters) - Britain will nationalise troubled mortgage lender Bradford & Bingley, the BBC reported on Saturday, but the government said discussions on the bank's future were still going on.

 

It would be the second British bank to be nationalised this year after Britain, buffeted by the global financial crisis, was forced to take Northern Rock into public ownership in February.

 

The credit crunch, sparked by losses on poor-quality U.S. home loans, has claimed a growing number of high-profile banking victims around the world.

 

The BBC said the decision to nationalise Bradford & Bingley, using legislation put through to deal with the Northern Rock crisis, would be announced on Sunday evening or early Monday.

 

Bradford & Bingley's network of about 200 branches would be sold to one or more commercial banks, the BBC said.

 

The government said talks on B&B were still under way. "The discussions are still going on. A further statement is expected before markets open on Monday," a Treasury spokesman said.

 

B&B declined comment

 

B&B shares tumbled to a record low on Friday and the cost of insuring its debt jumped, prompting regulators to step up efforts to find potential white knights for the bank, hit by the credit crunch and Britain's sliding housing market.

 

The financial crisis and weakening economy have heaped pressure on British Prime Minister Gordon Brown, whose party lags the opposition Conservatives in opinion polls and whose leadership has been questioned by some in his own party.

 

His government had to broker a rescue takeover this month when the country's biggest mortgage lender, HBOS, looked as if it might become another credit crunch victim.

 

The Treasury, the Financial Services Authority and the Bank of England were locked in talks on Bradford & Bingley over the weekend, officials said.
 

Date created : 2008-09-28

Comments

COMMENT(S)