Bradford and Bingley has become the second UK bank to be nationalised this year as a result of the worsening credit crisis.
After seizure by the British government, Banco Santander yesterday agreed to purchase Bradford and Bingley’s 197 branches, £20 billion (A$45 billion) worth of deposits and employees, for £612 million (A$1.4 billion).
The bank’s £41 billion (A$92 billion) of mortgage assets will remain under public ownership.
The transfer of branches and deposits to Banco Santander will increase its subsidiary Abbey’s market share to around 10 per cent of the UK market.
Today's other news