Bradford and Bingley - Treasury to intervene

Masomnia

Safer than ever.

Masomnia

That was the short answer, sorry.

The long(er) answer is that yes your money is very safe, but it will probably be transferred to some other company in the future. Whoever ends up buying the deposits that the bank owned. The government is planning on selling off the good bits and keeping the bad bits ie. most of the mortgage book will remain nationalized.

bristolleedsfan

gfideon wrote: »

I have just opened a savings account with B&B. Payment into the account is due tomprrow. Is it still safe to do so. It is for £ 35000.

If its a variable rate account its unlikely that any of the banks mentioned will continue to pay such a no strings loss leading rate for very long. You might find it prudent to re weigh up all the rates available in the market place on that basis before you deposit such a large sum of money.

Anyone with a fixed rate/term B+B account will have the rate honoured for the duration of the term in all likelyhood.

johnmoney05

Masomnia wrote: »

The government is planning on selling off the good bits and keeping the bad bits ie. most of the mortgage book will remain nationalized.

So who pays for the bad bits?

bristolleedsfan

johnmoney05 wrote: »

So who pays for the bad bits?

The good old hard working tax payer in all probablity. In next year or so their will in all likelyhood be less taxpayers so the bail outs will cost the taxpayers who still exist even more.

Plasticman

johnmoney05 wrote: »

So who pays for the bad bits?

Me & you - no surprise there then :rolleyes:

edwinac_2

bristolleedsfan wrote: »

So who pays for the bad bits? The good old hard working tax payer in all probability.

Yup, BBC news was keen to present that as a fait accomplit to its zombie audience.

Robert Peston, the BBC News "business editor" writes:

B&B's £50bn of loans, including £41bn of home mortgages, will not be sold and will be nationalised on a long-term basis.

It's interesting to note that the BBC has revised its article on the B&B nationalisation no less than 24 times so far!

When you compare each revision, you can see how the state broadcaster goes about fine tuning its propaganda in response to the public reaction.

The paragraph below, for example, was excised between revisions 10 and 11.

The public doubtless found it sickening to learn that the Treasury colluded with salivating banksters who were waiting impatiently to "instantaneously" tear the flesh from the B&B's carcass.

And so the BBC reacted to the public's anger on that, and simply airbrushed it from its report!

BBC News business editor Robert Peston says the Treasury will almost instantaneously sell to a bank or a number of banks.

Nothing here to see.. Move along now!

Treasury to nationalise B&B bank (BBC News - 24 versions)

Nick_C

I never thought there was any point in the word floccinaucinihilipilification, but it seems to be appropriate for the discussions that are going on today!

blackrod

When the stock exchange opens tomorrow does it mean B&B shares will drop to 0. If so does that mean stockholders big and small lose all their investments in one fell swoop, or will the government give something back like what happened to Railtrack.

Oblivion

blackrod wrote: »

When the stock exchange opens tomorrow does it mean B&B shares will drop to 0. If so does that mean stockholders big and small lose all their investments in one fell swoop, or will the government give something back like what happened to Railtrack.

If indeed the move to Nationalise B&B is confirmed, then trading in their shares will be suspended on the stock exchange so they will in effect be of zero value pending any valuation of the net assets ... and I think we know what they are worth. Another bad day for investors, but at least depositors' money in savings accounts should be safe.

Dave.