Saturday, Sep 27, 2008
And it's gone
BBC: BREAKING NEWS: Treasury to nationalise B&B bank
Troubled bank Bradford & Bingley is to be nationalised, the BBC has learned.
The bank will be nationalised using special legislation the Treasury put through when it took Northern Rock into public ownership earlier this year.
BBC News business editor Robert Peston says the Treasury will almost instantaneously sell to a bank, or a number of banks.
B&B's £50bn of loans will not be sold and will be nationalised on a long-term basis.
Posted by little professor @ 10:13 PM (1145 views) Add Comment
16 Comments
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1. jack c said...
No surprise to regulars on this site - after NR it was widely debated here that B&B/A&L were the next to go (A&L have a White Knight in Santander)
The proposed deal stinks - £50BN of dodgy mortgages nationalised whilst another private bank or banks cherry pick the best bits of B&B (they have £20bn worth of savings)
2. japanese uncle said...
Unfortunately B&B's collateral assets will turn from bad to worse as HPC aggressively accelerates.
3. Highland Property Bubble said...
This absolutely stinks. A very, very sad day for, I was going to say British democracy, but not one citizen in this country has voted for this action so I suppose it should be called something else. What a sad burden on the British taxpayer.
4. quiet guy said...
Speaking as a shareholder in the B&B loan portfolio (taxpayer), I have a couple of points I'd like to make:
1. Make sure you pay up you mortgage debts on time BTLers. You work for me now.
2. I trust that defaulters will be diligently pursued for many years for the money they owe me.
5. paul said...
Abosultely no mention on the BBC of the new taxpayer liability being taken on.
Criminally evasive reporting. This is a new low for the BBC.
6. techieman said...
Jack - Yes we (amongst others as you say on the site) have said that BB was the one to go. I actually thik its criminal for them to be after the savers whilst knowing where they were probably heading. I am not sure. As i understand Corporate affairs you cant trade whilst insolvent - all sorts of fines for the directors infact isnt it literally criminal to do so? In any case to me the real question must be the drive for savings with the extensive advertising.
I think this is it for a while now - the end of the beggining. As i said Friday.
7. harold said...
I'm with you on this Paul - completely outrageous to saddle the UK taxpayer with this debt, which will be paid for with inflation. Great! Let's nationalise BP and Shell while we're at it!
If anyone was under any illusions about who runs this country and in whose interests it is run, let the blinkers be removed from their eyes. Did you really think the politicians were there to represent your interests? Give me a break - politicians are mere actors in a show called democracy.
8. last_days_of_disco said...
This is the thing. The US have people on the streets saying, no to the bailout. Their head of the treasury is on his knees begging 'n stuff.
What is being done here. Nothing. Because just about the whole UK population is hocked up to their eyeballs.
Get ready for the harsh political reality. Everything is going to be done to protect mortgage holders. People who have saved, etc are going to
be treated as a dangerous enemy in our midst (i.e. many readers/posters on this site).
Simple math, there are way more people with mortgages and they can't walk away in this country. Their lives are on the line. So there is *no*
political solution possible that doesn't bail them out as well. That means nationalization of losses and the theft of the savings of those who have saved for those who haven't.
Just go into your office at work and spout that you think interest rates should be raised and watch the instantaneous reaction from the people there.
Political parties are onto this. You will not see any of them saying the things on this site. Not until well after they are so painfully obvious that there
is no political risk in saying them.
This is a dream position for whoever gets into power and you will see increasingly the rush to the bailout position from all parties. They will all
want to be the party of the best bailout in the UK while at the same time reaching out to savers by backing their savings with large amounts of fiat currency. Makes me want to weep but its the way its going. If the conservatives want to win up north, this what they have to do and they will do it.
Political parties *never* give away power.
House/Car/Fixed asset deflation
Food/Fuel inflation
9. jack c said...
Interesting how Mr Peston of the BBC was again the first to break the news - he now seems to be the unelected news announcer for the Government.
@techieman - "I think this is it for a while now - the end of the beggining" - my prediction on the next domino in the pack is that we see one of the Icelandic Banks come under pressure - any thoughts?
10. mountain goat said...
IT'S THE FAULT OF THOSE EVIL SHORT SELLERS AGAIN, isn't it?
11. Stevie Dee said...
What does this all mean for these BTLers, well the taxman has more info on their dealings for starters. I genuinely hope these individuals (BTLers) are really punished for their greed & short-sightedness.
12. indiablue19 said...
Said in jest above - but unless you also nationalise the healthy companies it really isn't fair on the taxpayer - is it? And where does that take us?
13. converted lurker said...
Paul, the govt. have won the newspeak verbals battle which was as important an issue to them as saving the system by all costs and they had to control BBC asap in order to execute this strategy. It's also now apparent that all major news agencies, whilst sniping at the fringes, are united in their belief that the govt. have to be helped on this issue, otherwise we might as well install martial law today. Its not just Paulson, Pelosi, Bush and co that have a lot of cash in the game, so do the Murdoch/Turner empires.
14. indiablue19 said...
Yes, please notice that Mr. Brown wasn't saying much at all and receiving horrible press anyway, until he suddenly had such widespread media approval for his latest speech - and now he too is resoundingly patting Washington DC on the back for the supposed "bailout." One hand washes the other?
15. indiablue19 said...
Oh, yes, and also the nationalisation of companies over here is picking up full steam again, in keeping with the approach across the pond. Two octupuses [octupii?] hand, in hand, in hand, in hand.
16. d'oh said...
Plural of octopus is (your choice) octopusses or octopodes (not to be confused with octopods...octopi is not correct).