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As of this morning Bradford & Bingley has been nationalised by the government.The rescue deal, secured by the Financial Services Authority and the Treasury, will see the Treasury take control of the remaining mortgage and personal loan books, wholesale liabilities and the relevant staff and headquarters.Abbey will take over deposit and saver accounts and B&B retail branches.

The Financial Services Compensation Scheme has paid out around £14bn to ensure the protection of B&B’s retail deposits.

It has paid Abbey £4bn to ensure the safety of the remaining deposits not covered by the FSCS.

The Bank of England has been called in to fund the transfer by the FSCS which will be paid for by the wind up of B&B.

A release says the move was triggered by poor investor and lender confidence, likely sparked by growing speculation around the longevity of the business.

B&B owns Mortgage Express, the nation’s largest buy-to-let lender and last week it announced it would slash 370 jobs connected to mortgage processing and begin a review of head office and central staff.

A spokesman from the Treasury says “The situation is fluid. Talks are ongoing but if a buyer cannot be secured then the government is prepared to act. But a private-sector solution is preferable.”