Troubled bank sells branch network to Abbey
The government has confirmed that troubled bank Bradford & Bingley is to be nationalised.
Under the terms of the deal, the government is to take control of the bank's £50bn mortgages and loan book and shares in the company have been suspended.
Bradford &Bingley's £20bn savings business and branch network will be bought by the Abbey, which is owned by Spanish banking group Santander.
The Treasury said: "Following recent turbulence in global financial markets, Bradford & Bingley has found itself under increasing pressure as investors and lenders lost confidence in its ability to carry on as an independent institution."
“The move would protect savers' money and that B&B's branches, call centres and internet operations would "be open for business as usual to provide continuity of service to customers,” the Treasury added.
Zurich is one of a number of insurers that has affinity deals with the troubled bank, it is understood that talks regarding this relationship will be held this week.
