FSA PUTS BIG FIVE IN FRAME TO SAVE B&BTuesday June 10,2008 Andrew Johnson, Associate City EditorBritain’s biggest banks were being lined up by the City watchdog to rescue stricken lender Bradford & Bingley had its £400million rights issue collapsed, it emerged yesterday. The Financial Services Authority held talks with the big five clearing banks about bailing out B&B to avoid shattering confidence in a sector already hit by the Northern Rock debacle.
It is believed the FSA played a key role in putting in place the deal where private equity group TPG bought a 23 per cent stake in B&B for £179million. This effectively made the emergency plan redundant. However, HBOS, HSBC, Lloyds TSB, Barclays and Royal Bank of Scotland have agreed to sub-underwrite the remaining £248million being raised through a repriced rights issue at 55p a share. They have provided £20million apiece to do so. B&B shares rose 2bp to 72p yesterday. The banks declined to comment. An FSA spokeswoman said: “We were in constant discussions with a number of organisations.” Reports suggested HSBC volunteered to take over underwriting had one of the leads, Citigroup and UBS, pulled out after B&B’s shock profits warning. |
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| Saturday 10th January 2009 |  |
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