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Home > Financial Stability > Resolutions prior to the Banking Act 2009
 

Resolutions prior to the Banking Act 2009

Previous resolutions under the Banking Act 2009  |  Resolutions prior to the Banking Act 2009

​Before the permanent resolution regime came into effect, the authorities relied on emergency legislation in the Banking (Special Provisions) Act (2008) to carry out resolutions. Four institutions were resolved under these regulations, see below:

Northern Rock

Northern Rock plc was taken into temporary public ownership on 22 February 2008, marking the first resolution under the Banking (Special Provisions) Act 2008.

 

Bradford & Bingley

 
Bradford & Bingley plc became the second financial institution to be resolved under the Act on 29 September 2008. The institution was taken into public ownership. Bradford & Bingley’s UK retail deposit book, along with its branch network and its Isle of Man operations, were then transferred to Abbey National plc. The remaining assets and liabilities, including the mortgage book and personal loan book remained in public ownership to be wound down.
 
 

Heritable Bank

 
The Financial Services Authority declared Heritable Bank plc (a UK subsidiary of Landsbanki, an Icelandic bank) to be in default on 7 October 2008. The retail deposit liabilities of the bank were transferred to ING Direct on 8 October 2008. The remaining assets and liabilities were put under administration.
 
 

Kaupthing

 
On 8 October 2008, the FSA declared Kaupthing, Singer & Friedlander (the UK subsidiary of Kaupthing Bank) to be in default. Some retail deposits (those relating to the internet based “Edge” brand) were transferred to ING Direct on the same day. The rest of the depositors received a full payout of their deposit balance from the Financial Services Compensation Scheme (FSCS). The remaining assets and liabilities of the bank were put under administration.
 
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