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25 January 2010

Approval of B&B and Dunfermline wind-down plans

The Government today welcomes the European Commission’s (EC) approval of restructuring plans for Bradford & Bingley plc (B&B) and Dunfermline Building Society.

The government guarantee arrangements in relation to B&B, which were announced on September 29 2009, have been approved by the Commission as part of the restructuring plan and will remain in place until the wind down of B&B is complete.

Notes for editors

1. On 29 September 2008 B&B was taken into public ownership after the FSA declared the bank in breach of its threshold conditions for operating as a deposit-taker. The retail deposit business was transferred to Abbey/Santander following a competitive sale process, and the remainder of the business was retained in public ownership, to be wound down over time.

2. On 27 March 2009 the Government submitted to the European Commission a restructuring plan for B&B in accordance with EC state aid rules. This set out the government's plan for the orderly wind down of the bank, in line with the summary business plan published on B&B's website at the time. The Government confirmed that it had requested approval from the EC for the continuation of the guarantee arrangements.

3. On 30th March 2009, Dunfermline’s retail and wholesale deposits, branches, head office and originated residential mortgages and social housing portfolio were transferred to Nationwide Building under the Banking Act 2009. The remainder of Dunfermline’s business was placed in special administration and is being wound down over time.

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