Struggling B & B WILL be nationalised

[Sweetpea]

The struggling Bradford and Bingley bank will be nationalised, with an announcement expected later today.

BBC business editor Robert Peston reported that the B&B will be sold on almost immediately to another bank or banks.
There was no immediate comment from the Treasury - which had been locked in discussions all day with B&B and the Financial Services Authority.
However it is clear that the bank looks set to become the latest victim of the global credit crunch which has paralysed the world financial system.
According to the BBC report, the Government will nationalise the B&B using the special legislation passed to take Northern Rock into public ownership earlier this year.
B&B's share price has tumbled in recent days, despite announcing plans

Bradford & Bingley to be nationalised by the Treasury | Mail Online

[Churchill]

Originally Posted by Sweetpea

The struggling Bradford and Bingley bank will be nationalised, with an announcement expected later today.

BBC business editor Robert Peston reported that the B&B will be sold on almost immediately to another bank or banks.

So why bother Nationalising it then, just put it into receivership until a buyer comes along? more bullshit if you ask me.

[Haqa]

Who in the government did they lend money to?

H.

[terrywit]

Originally Posted by Churchill

just put it into receivership until a buyer comes along?

don't wotk that way, the receiver screws all their fees out the corpse of the firm then gives say 2p in the pound to the creditors, then goodnight vienna

[Churchill]

Originally Posted by terrywit

don't wotk that way, the receiver screws all their fees out the corpse of the firm then gives say 2p in the pound to the creditors, then goodnight vienna

No, that's liquidation. Administrators are tasked with running the business and finding a buyer, no need for govt to buy and then sell on again at a loss.

[terrywit]

Originally Posted by Churchill

No, that's liquidation.

I'am talking about "administrative receivership" liquidation is done to wind up a firm either by chocie or order of court.

in my experience once an Insolvency Practitioners appointed any assets held are spent in their fees 1st (I'am yet to see one survive)

[Churchill]

The govt can and should appoint receivers from the Insolvency Service, rather than liquidate and shut down the company.

They are making out that they're going to Nationlise it, then sell it. If it's that saleable, and there are buyers in the market, why nationalise it first? Seems to me that it isn't saleable and so if they put it into administration like they did Barings, it would have to sell for a nominal figure. Perhaps this is right rather than ploughing taxpayers money into another bank whihc incidentally, only recently purchased £750m in leveraged debt from GE Capital. How did they manage that?