Saturday, August 15, 2009
Bad debts at Bradford & Bingley, the state-owned buy-to-let mortgage lender, more than quadrupled to Â£328m in the first six months of the year, driving it to a Â£160m loss. The losses illustrate for the first time the scale of the problems at the bank. Last year, B&B posted a Â£134m profit despite reporting Â£507m of bad debts for the full 12 months due to gains made from the Â£612m sale of its Â£20bn deposit book and 197 branches to Abbey. B&B's remaining Â£40.3bn mortgage book is now being wound down.