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No compensation for B&B investors
The Treasury does not have to pay compensation to former shareholders of buy-to-let lender Bradford & Bingley (B&B), an independent valuer said yesterday.
B&B, a leading buy-to-let mortgage provider that was hit by a sharp rise in funding costs during the financial crisis, was taken into public ownership in September 2008 and its shares were transferred to the Treasury. Its savings business and branch network were sold to Spain’s Santander.
Peter Clokey, a PwC partner who was appointed independent valuer for the Bradford & Bingley Compensation Scheme, said in the absence of the transfer B&B “would have been unable to continue as a going concern” and would have applied to go into administration.