Nationalisation FAQs

This page contains answers to the most frequently asked questions about the impact of nationalisation on Bradford & Bingley.

Shareholders

What's happened to my shares?

All shares in Bradford & Bingley were transferred to the HM Treasury at 8am on 29 September 2008.

When will I receive compensation and how much will I receive?

The Independent Valuer appointed by the Treasury under the Bradford & Bingley Compensation Scheme Order 2008 issued his revised assessment notice on 14 March 2011. This upheld his original decision that no compensation is payable by the Treasury to persons who held Bradford & Bingley shares immediately before they were transferred into public ownership on 29 September 2008. An appeal was subsequently made against this decision to the Upper Tribunal (Tax and Chancery Chamber) by a number of former shareholders. The Upper Tribunal upheld the Valuer's revised assessment notice and the Valuer's work is therefore complete.

Why did my shares not transfer to Abbey? Why were the shareholders not consulted?

The transfer of the shares of Bradford & Bingley plc into public ownership took place in accordance with the Banking (Special Provisions) Act 2008. That Act allows HM Treasury to take such action (without consultation with shareholders, if necessary) where it appears to HM Treasury that it is desirable to do so in order to maintain the stability of the UK financial system and there would be a serious threat to that stability if it did not do so. The transfer to Abbey National plc of the retail deposit business of Bradford & Bingley (along with its branch network) was also undertaken in accordance with the Act, following a competitive sale process.

Mortgage customers

Nationalisation does not affect the existing terms and conditions of your mortgage in any way. You continue to owe the same amount to us as you did before and you should continue to make your monthly payments as usual.

However, following nationalisation and the sale of the Bradford & Bingley savings and retail branch business to Abbey Santander, we are now permanently closed to new mortgage business and are unable to offer new deals or further loans.  Our overall objective is now to repay and create value for UK taxpayers by reducing the size of our mortgage book, so we want to help you pay-off your mortgage or find a better deal elsewhere.  We also have a vested interest in ensuring you continue to manage your mortgage effectively, so we remain committed to supporting you and providing a high standard of service for as long as you remain a customer with us.

For more information about the impact of nationalisation for existing mortgage customers, please visit the customer section of our website.

Insurance, wealth and protection customers

For information about the impact of nationalisation for existing insurance, wealth and protection customers, please visit the customer section of our website.

Bond holders

The detail set out below is for information purposes only. Bradford & Bingley plc is unable to give legal or other advice regarding the current or future position of investors.

In the first instance, please refer to the HM Treasury website for further information on the Guarantee Arrangements (put in place by HM Treasury to safeguard certain wholesale borrowings and derivative transactions of and wholesale deposits with Bradford & Bingley plc existing as at midnight on 28 September 2008) at:

http://webarchive.nationalarchives.gov.uk/+/http:/www.hm-treasury.gov.uk/press_98_08.htm and http://webarchive.nationalarchives.gov.uk/+/http:/www.hm-treasury.gov.uk/bradford_bingley_assets_transfer.htm

Subordinated Bonds

Subordinated or other hybrid capital instruments are not covered by the Guarantee Arrangements. This includes:

  • Perpetual Subordinated Bonds;
  • Perpetual Preferred Securities; and

Dated and Undated subordinated bonds issued under Bradford & Bingley’s Euro Medium Term Note Programme.

Undated Perpetual Subordinated Bonds; Perpetual Preferred Securities; Senior/Unsubordinated Bonds:

These are as follows:

Description ISIN
£50,000,000 11 5/8 per cent. Perpetual Subordinated Bonds GB0002233913
£55,000,000 13 per cent. Perpetual Subordinated Bonds GB0002228939
£250,000,000 Fixed Rate Step-up Undated Subordinated Notes XS0167366433
£200,000,000 6.00 per cent. Perpetual Subordinated Callable Step-up Notes XS0181867309
£150,000,000 6.462 per cent. Undated Subordinated Notes (issued in connection with the £150,000,000 6.42 per cent. Guaranteed Non-voting Non-cumulative Perpetual Preferred Securities Series A of Bradford & Bingley Capital Funding L.P.) GB0031670762
£150 million 6.462 per cent. Non-cumulative Perpetual Preferred Securities Series A of Bradford & Bingley Capital Funding L.P. XS014880453
£150 million Floating Rate Non-cumulative Perpetual LP interests of Bradford & Bingley Capital Funding II L.P. N.A.

These bonds still exist and their terms have been unaffected by Bradford & Bingley being taken into public ownership.

In respect of the payment of interest, please see the press releases issued by Bradford & Bingley.

Bradford & Bingley expect to make further announcements regarding other interest payments in respect of such bonds in due course which will be included on our website.
We are unable to give legal or other advice regarding the current or future position of investors in relation to these bonds and Bradford & Bingley plc would suggest that you obtain advice from your own advisers (for example, legal, tax, stock-broking and so forth).

In respect of Unsubordinated Bonds:

Unsubordinated bonds are covered by the guarantee arrangements put in place by the government which have been extended pending a decision on State Aid approval from the European Commission and which were due to expire on 29 March 2009. The Government stated on 29 September 2008 that it intended to seek state aid approval from the European Commission to extend those arrangements: see http://webarchive.nationalarchives.gov.uk/+/http:/www.hm-treasury.gov.uk/press_97_08.htm

Dated Subordinated Bonds:

These are as follows:

Description ISIN
£250,000,000 Fixed Rate/Floating Rate Callable Step-Up Dated Subordinated Notes due January 2018 XS0276330643
£150,000,000 Floating Rate Dated Subordinated Notes due March 2054 (issued in connection with the £150 million Floating Rate Non-cumulative Perpetual LP interests of Bradford & Bingley Capital Funding II L.P.) XS0215817718
£200,000,000 Fixed Rate Step-Up Subordinated Notes due 12th December 2022 XS0159302255
£125,000,000 7.625 per cent. Subordinated Notes due 16th February 2010 XS0108194407
£125,000,000 6.625 per cent. Subordinated Notes due 16th June 2023 XS0087993423

The terms of these Bonds have been amended as per the Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008, bondholders have been notified of this Order and a Regulatory News Service announcement has been issued by Bradford & Bingley plc in respect of such Order on 10 October 2008.

The terms of these Bonds have been further amended as per the Bradford & Bingley plc Transfer of Securities and Property etc. (Amendment) Order 2009 and a Regulatory News Service announcement has been issued by Bradford & Bingley plc on 19 February 2009 in respect of that Order. View details as to this amendment.

In respect of the payment of interest, please see the press releases issued by Bradford & Bingley.

Bradford & Bingley plc expect to make further announcements regarding other interest payments in respect of such bonds in due course which will be included on our website.

Otherwise, the terms of Bradford & Bingley plc's obligations in respect of these bonds have not been altered. These bonds still exist. However, Bradford & Bingley plc is unable to give legal or other advice regarding the current or future position of investors in relation to these bonds and Bradford & Bingley plc would suggest that you obtain advice from your own advisers (for example, legal, tax, stock-broking and so forth).

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