bradford-and-bingley-plc-statement-by-the-chancellor.pdf

Here are the key points summarized in English:

1. The Chancellor of the Exchequer announced that Bradford & Bingley's UK and Isle of Man retail deposit business, along with its branch network, has been transferred to Abbey National plc.
2. The transfer was conducted by Morgan Stanley on behalf of HM Treasury and protects savers' money by transferring it to Abbey.
3. Bradford & Bingley found itself under increasing pressure due to investor and lender confidence loss, leading the FSA to determine that the firm no longer met its threshold conditions for operating as a deposit taker.
4. The Government acted immediately to maintain financial stability and protect depositors, while minimizing exposure to taxpayers.
5. For savers and borrowers of Bradford & Bingley, it will be business as usual, with customers able to access their accounts at normal branches.
6. The remaining assets and liabilities of Bradford & Bingley will be taken into public ownership through the transfer to the Treasury of the company's shares.
7. HM Treasury and the Financial Services Compensation Scheme (FSCS) have acquired rights in respect of the proceeds of the wind-down and realization of the assets of the remaining business of Bradford & Bingley.
8. The FSCS has been triggered following the failure of Bradford & Bingley to meet its regulatory requirements, prior to the making of the Transfer Order.
9. The Treasury has made a payment to Abbey for retail deposit amounts not covered by the FSCS, amounting to approximately £4bn.
10. The FSCS will finance its payout through a short-term loan from the Bank of England, which will be replaced with a loan from the Government after a short period of time.
11. The Government stands behind the FSCS, so it can be relied on to be able to play its role in meeting future claims that arise.