LONDON (AFP) — British bank Bradford & Bingley will be nationalised soon, the BBC reported on Sunday, as the global financial crisis appeared set to claim another corporate victim.
The BBC website, which did not cite its source, said an announcement was due later Sunday and added that Bradford & Bingley would be sold on almost immediately to another bank or banks.
Across the Atlantic, meanwhile, US lawmakers were battling to clinch a 700-billion-dollar bailout for the struggling financial system before markets reopen on Monday.
Shares in Bradford & Bingley, hit by a housing downturn and weakness in the economy, have collapsed in recent weeks on fears it could become another Northern Rock, which was nationalised in February after falling foul of the credit crunch.
Officials from the government's Treasury department, industry watchdog the Financial Services Authority (FSA) and the Bank of England met with Bradford & Bingley executives to try and secure its future over the weekend.
Tony McGarahan, a spokesman for Bradford & Bingley, said an announcement would be made before the London stock market reopens on Monday.
"We can assure customers that their deposits are safe with Bradford & Bingley," McGarahan said.
A Treasury spokesman added: "The Treasury, the FSA and the Bank of England are working with Bradford & Bingley to consider the implications for the business of the recent financial turmoil."
Under the plan, the BBC added that the Treasury would sell B&B's 200 branches and its savings business to a rival bank or banks.
It added that possible buyers could include British bank Barclays, Spanish peer Santander and global giant HSBC.
The British government would nationalise B&B's loans, which total 50 billion pounds (63 billion euros, 92 billion dollars) and include home loans of 41 billion pounds, according to the BBC.
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