Braford & Bingley's bid to defer bond interest could be repeated

BRADFORD &amp; Bingley (B&amp;B) has said it will not pay interest on &pound;325m of subordinated bonds, fuelling speculation that other nationalised lenders such as Northern Rock might follow suit.<br /><br />The bank said last night that it would not pay interest on three tranches of notes, &pound;150m of floating rate notes due on 30 June, &pound;125m of 6.625 per cent notes due on 16 June and &pound;50m worth of 11.625 per cent bonds due on 20 July.<br /><br />B&amp;B was only able to defer payments after the Treasury changed the rules earlier this year to permit deferrals on lower Tier 2 debt.<br /><br />The bank has not yet decided whether it will defer future payments. The change has sparked concerns that other state-backed firms, could echo the move.