In 2008, the UK Government decided to nationalise and wind down Bradford & Bingley while it was still solvent. It sold its retail deposit book and branches and provided the remaining part of the business with a working capital facility and guarantee arrangements. The Commission, on 1 October 2008 authorised these measures as rescue aid. The UK was obliged to submit liquidation or restructuring plan for Bradford & Bingley which the Commission has now approved.
The liquidation plan which the UK had proposed foresees a continuance of the rescue measures previously authorised, which are now extended for the liquidation of the bank, and a potential capital injection. The Commission in approving the measures came to the conclusion that they were necessary for an orderly winding down of the bank as well as helping to preserve the confidence of creditors in the financial system.
IP/10/47 25 January 2010