B&B boss “massively sorry” for bank failure

By MoneyhighStreet Staff. Published on November 18, 2008 This post currently has no comments.

Bradford Bingley
The board of Bradford & Bingley (B&B) is "massively sorry" for the bank''s collapse, its former chairman has said.

Rod Kent, who was replaced by Richard Pym last Friday, told MPs that he was "deeply disappointed" over the mortgage lender''s nationalisation - and apologised on the board''s behalf.

The House of Commons treasury select committee also heard that employee numbers at the bank had now been reduced from 3,000 to 1,000.

B&B was taken over by the government earlier this year, after it suffered a near-total loss of investor confidence and its share price plunged.

The firm was heavily exposed to both the buy to let and the self certification sectors, meaning that its mortgage book was seen as particularly risky when compared to other banks.

Mr Kent said: "The board accepts it is fully accountable for what happened."

Northern Rock has also been nationalised by the government, due to the credit crisis.