Britain's ailing Bradford & Bingley building society is
about to be nationalized, media reports said Saturday, citing sources within
London's financial district, dpa reported.
The decision could be announced Sunday evening or Monday morning by the
Financial Services Authority (FSA) and the Finance Ministry, the British
broadcaster BBC reported.
In order to avert a possible collapse, the country's eighth largest mortgage
lender could be merged with Northern Rock, which was itself nationalized
earlier in the year when it failed, the Daily Telegraph and Daily Mail
reported.
Under one arrangement under discussion, the state would take over obligations
of 63 billion euros (92 billion dollars) including risk- ridden mortgages and
loans of 52 billion euros, BBC reported. Buyers were being sought for other
parts of the bank.
On a visit to the United States, British Prime Minister Gordon Brown said the
reports were speculation and he would not comment on them.
Media reports earlier in the week had said that the FSA was seeking a buyer for
Bradford & Bingley, the latest victim of the global financial crisis.
The bank posted losses of 26.7 million pounds (49 million dollars) in the first
six months of 2008.
Britain's six largest banks hold about a 30 per cent stake in Bradford &
Bingley between them, Bloomberg financial news agency reported.
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