Financial Times FT.com

Nationalisation could lead to a UK 'bad bank'

By Jane Croft and Kate Burgess

Published: September 29 2008 03:00 | Last updated: September 29 2008 03:00

Could the nationalisation of Bradford & Bingley lead, in effect, to the creation of a UK "bad bank" which would be able to absorb any future UK bank or building society failures?

That was the questions some analysts were left asking yesterday as the UK government looked set to be landed with B&B's £42bn mortgage loan book of riskier self-certified and buy-tolet mortgage loans.

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