The Failure of Bradford & Bingley is the final nail in the coffin of one of Margaret Thatcher's most widely felt financial reforms. Its nationalisation marks the end for de-mutualised building societies, all of which have now been taken over or gone bust.
The Iron Lady introduced demutualisation in an 1986 Act, enabling building societies - owned by their members - to turn themselves into public companies. This allowed the likes of Northern Rock, Halifax , Abbey National (Santander) B&B better access to cheaper money; but they all either failed or were gradually snapped up by competitors with more spending power.
B&B demutualised in 2000 and built its business on risky buy-to-let and self-certified mortgage market - a decision which , with banks now super-cautious about lending money, has proved its downfall.
Taken from: The Metro Newspaper Mon Sept 29, 2008
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