Comments on: When bank defaults are a good thing A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: JH Wed, 27 May 2009 19:44:33 +0000 Felix – you might want to brush up on B&B’s recent history.

It effectively failed last year and was nationalised – its deposit book and branches were sold to Santader (who today announced they would be merged under the Santander brand). Its lending book, which apparently contains lots of high LTV (including buy-to-let) mortgages is now taxpayer owned.

So the premise of your last paragraph is wrong – the equivalent of the FDIC already swooped in and taken it over to protect depositors, in September. Today’s action is just a welcome demonstration that the taxpayer won’t be bailing out every bank creditor 100%.