Treasury and FSA working on B and B rescue plan
Treasury and FSA working on B and B rescue plan
Saturday 27th September 2008
The Treasury and the Financial Services Authority (FSA) are in talks to secure the future of Bradford & Bingley.Yesterday, the bank announced plans to cut 370 jobs and a loss of £134 million after the sale of troubled assets.
And Liberal Democrats treasury spokesman Vince Cable has said the nationalisation of lender Bradford and Bingley could be acceptable as a last resort.
Speaking to the BBC, the left-wing party's leader said a private takeover would be the best option but said prompt government intervention would be necessary if no other option was present.
Mr Cable, who served as the party's acting leader after Menzies Campbell's resignation, told the broadcaster: "If the bank is in serious difficulty, the best option is if it were taken over by another bank and without any involvement by the taxpayer.
"But the speculation in the national newspapers is that that won't happen and in which case it will effectively be nationalised, and that's what a takeover of Northern Rock actually means.
"I just hope this time the government doesn't faff around for four or five months getting this sorted out and just gets on with it," he added.
Speculation has mounted over the future of Bradford and Bingley, which has a large portfolio of buy-to-let and self-cert mortgages that has been badly hit by the difficulties in the property market.
Its share price fell by six per cent in trading on Friday and press reports over the weekend have indicated that it is in talks with the financial services authority and the treasury over a possible takeover or bailout.
The bank's chief executive, Richard Pym, said on Friday that the bank remained well-capitalised and could deal with its troubles.
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