Why did RBS and HBOS receive emergency assistance from the Bank of England and not Bradford & Bingley?
According to the Bank of England, it is a core principle that when the central bank gives its assistance, it must only be done where absolutely necessary and it should always be a bridge to a solution of the underlying problem of the bank. For both RBS and HBOS, short term liquidity measures allowed them to bridge through to the Government recapitalisation scheme and the merger with LloydsTSB respectively. In Bradford & Bingley’s case, no such longer term measure was available, except to enact the Transfer order.
