Bradford & Bingley building society crash

UnsureAboutthis

Out of interest I was just now looking up which building societies had gone bust
The B&B was one in the fincial crisis of 2008/9 was one

I understand the B&B bs went to the stock market and shareholders lost all of their money/share

However, what I want to know is - are savers with more than the FSCS at £ 85,000, I suppose, at the time.
Did those savers with more than the 85k get all of their money back?

I read that the Abbey building society took over the business and then Abbey was sold to Santadar

So did those with more than 85k get every penny back and how long after the crash did they get their money back/access

Hoenir

B&B's lending book was nationalised and formed part of NRAM. The bulk of which was the old Northerm Rock mortgage book. 

Savers suffered no loss. The extent of the crisis was such that confidence had to be maintained in the entire banking system. The infamous weekend session at no 11 in October 2008 saved the day. 

UnsureAboutthis

Hoenir said:

B&B's lending book was nationalised and formed part of NRAM. The bulk of which was the old Northerm Rock mortgage book. 

Savers suffered no loss. The extent of the crisis was such that confidence had to be maintained in the entire banking system. The infamous weekend session at no 11 in October 2008 saved the day. 

Many thanks.

allegro120

UnsureAboutthis said:

Out of interest I was just now looking up which building societies had gone bust
The B&B was one in the fincial crisis of 2008/9 was one

I understand the B&B bs went to the stock market and shareholders lost all of their money/share

However, what I want to know is - are savers with more than the FSCS at £ 85,000, I suppose, at the time.
Did those savers with more than the 85k get all of their money back?

I read that the Abbey building society took over the business and then Abbey was sold to Santadar

So did those with more than 85k get every penny back and how long after the crash did they get their money back/access

I had mortgage with B&B.  In 2000 they morphed into a bank and as a result of this development I received something around £650 in my bank account.

Kim_13

Wasn’t the FSCS limit considerably lower than £85,000 back then?

masonic

Kim_13 said:

Wasn’t the FSCS limit considerably lower than £85,000 back then?

It had recently been raised to £50k. It was previously 100% of the first £2k and 90% of the next £33k. There was a brief spell where it was 100% of the first £35k.

UnsureAboutthis

masonic said:

Kim_13 said:

Wasn’t the FSCS limit considerably lower than £85,000 back then?

It had recently been raised to £50k. It was previously 100% of the first £2k and 90% of the next £33k. There was a brief spell where it was 100% of the first £35k.

I'm guessing as The Abbey took over - people with savings outside the then limits of the FSCS did not lose money?

Linton

UnsureAboutthis said:

masonic said:

Kim_13 said:

Wasn’t the FSCS limit considerably lower than £85,000 back then?

It had recently been raised to £50k. It was previously 100% of the first £2k and 90% of the next £33k. There was a brief spell where it was 100% of the first £35k.

I'm guessing as The Abbey took over - people with savings outside the then limits of the FSCS did not lose money?

No, the government ensured that it did not happen.  If one bank actually failed there was a real danger that there would be a run on all banks.  Most if not all were in a dodgy state.