The Treasury was poised last night to nationalise Bradford & Bingley, the troubled mortgage bank.
In an attempt to avoid a repeat of the Northern Rock debacle, the government plans to hold an immediate fire sale to sell off B&B’s assests to one or more banks.
Spanish banking group Santander was in talks last night, and another potential buyer is HSBC, according to The Sunday Times .
It is understood that most of the bank’s £50bn of loans, including £42bn of home mortgages, will be nationalised on a long-term basis.The government has also been lining up bidders for B&B’s £20bn of retail deposits and 197 branches, which it is expected to sell off.
The Observer reports that Barclays was also involved in talks, but is believed to have walked away.
The Sunday Times, 28/09/08 page 1 Business page 1, 4-5 Mail on Sunday, page 8, 59 The Sunday Telegraph p1, 4 Business p1 The Independent on Sunday p18 p77 The Observer p1, 6-7 Business p1
