| From FT: By any definition, Bradford & Bingley, the UK mortgage lender, has been badly run. Assuming it is wholly or partly nationalised, the bank’s demise can be blamed on the poor quality of its assets, rather than a Northern Rock-style funding crisis.
Most of its mortgage loans, including those purchased from other providers, were to landlords hoping to profit from a property boom or to people who gave no proof of their salary. Little surprise that its rate of arrears is well above that of other lenders. It was always a likely victim of any significant downturn in house prices, particularly in a global financial crisis. Systemic consequences of its widely anticipated collapse should not be far-reaching. .... Full Article: Source
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