Saturday, September 27, 2008

Chronicles Of Depression 2.0: #256

Treasury to nationalise B&B bank
Troubled bank Bradford & Bingley is to be nationalised, the BBC has learned.
Officials from the Treasury and the Financial Services Authority (FSA) have been in talks with executives from the bank in a bid to secure its future.

BBC News business editor Robert Peston says the Treasury will almost instantaneously sell to a bank, or a number of banks.

B&B's share price has plummeted and it has announced plans to cut 370 jobs due to the downturn in the mortgage market.

The bank will be nationalised using special legislation the Treasury put through when it took Northern Rock into public ownership earlier this year.

B&B's £50bn of loans, including £41bn of home mortgages, will not be sold and will be nationalised on a long-term basis.

Bank failure after bank failure.

And yet 58% disbelieve.

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