Monday's List of Casualties

• Bradford & Bingley was bought by the UK government and will take control of the bank's £50bn mortgages and loans, while B&B's £20bn savings unit and branches will be sold to the Santander Group
  
  
• Wachovia, the fourth-largest US bank, was bought by larger rival Citigroup in a rescue deal backed by US authorities
  
  
• Benelux banking giant Fortis was partially nationalised by the Dutch, Belgian and Luxembourg governments to ensure its survival
  
  
• The Icelandic government took control of the country's third-largest bank, Glitnir, after the company had faced short-term funding problems
  
  

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Troubled Bradford & Bingley Nationalised

Troubled Bradford & Bingley has been nationalised. The government will take control of the bank's £50bn mortgages and loans, while B&B's £20bn savings unit and branches will be bought by Spain's Santander.

Abbey, which is part of Spanish banking group Santander, is paying £612m to buy B&B's savings business and 197 branches. To help facilitate Abbey's takeover of B&B's savings business and branches, it has been paid £14.6bn from the Financial Services Compensation Scheme - funded by the Bank of England - and a further £4.5bn from the Treasury. This £19.1bn is to guarantee that Abbey could pay back all B&B savings account customers, if need be. The government says it will get the money back - starting with the Treasury's £4.5bn - following the redemption and sale of B&B's mortgages, that are now in public hands.

Under the move, all B&B savings accounts are protected, and taxpayers are being shielded from any losses. B&B is just the latest bank that has needed rescuing in a turbulent period for British financial institutions.

It follows after the announcement two weeks ago that HBOS is being bought by Lloyds TSB, and Nationwide's takeover of smaller building society rivals Derbyshire and Cheshire.

For any Question and Answers you have about this announcement you can visit the B&B Q&As.


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National Minimum Wage Increased From Wednesday

Over 1m people in the UK are set to benefit from an increase in the National Minimum wage. From Wednesday 01st October 2008, the minimum hourly rate for a 22 year-old will increase by 21 pence to £5.73.

The Increases;

• Workers aged 22+ - (£5.73 up from £5.52, +3.8%, +£0.21 / +£8.20)
• Workers aged 18-21 - (£4.77 up from £4.60, +3.7%, +£0.17 / +£6.80)
• Workers aged 16-17 - (£3.53 up from £3.40, +3.8%, +£0.13 / +5.20)

Unions are calling on the Low Pay Commission (an independent organisation that sets the rates annually) to give a substantial increase in October 2009 to help those that are being adversely affected by the increased cost of living due to higher energy and food costs. Inflation at a 16 year high, is currently at 4.7%, in excess of the NMW increases. Unions argue that those on low incomes spend a higher proportion of their income on energy costs and should be given a fairer wage increase to reflect this.

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