The axe finally falls on the Bradford and Bingley
News is slowly filtering through to the City that the future of the Bradford and Bingley will be one away from the stock market and public control. The Treasury has confirmed the worst fears of those in the market, that the group will be nationalised and the vast majority of the operations taken in house by the government. So what does this mean?
In simple terms it looks as though the Bradford and Bingley's bank deposit arrangements and branches will be acquired by a competitor - with Spanish outfit Santander seemingly in pole position at the moment - with the mortgage and loan operations being taken on by the government. In affect we are seeing the UK tax payer take on more risk to support the ailing bank and protect the overall UK financial sector.
As we have covered a number of times over the last few weeks, the talk of a 'White Knight' coming to the rescue of the whole Bradford and Bingley operation was always an outside bet. Why would anyone want to take on an operation which was struggling, where the operation depended upon the money markets and exposure to the failing buy to let market?
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