Euro nod for winding down of B&B

EU regulators cleared yesterday the liquidation of Bradford and Bingley after a request from the UK authorities, which broke up and partly nationalised the lender nearly two years ago.

Hit by a sharp rise in funding costs during the credit crunch, Bradford and Bingley sold its savings business and branch network to Spain's Banco Santander in 2008 while the government took over its loan book.

"The UK authorities' market-oriented solution has avoided any disproportionate distortions of competition while enabling the preservation of the viable parts of the business," Competition Commissioner Neelie Kroes said in a statement. The European Commission said the liquidation period would cover more than 10 years.

It said the winding-down plan foresaw the extension of UK rescue measures already approved by the European Union executive and a potential capital injection.

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