The European Commission (EC) has approved the restructuring plans for Bradford & Bingley, which was broke up and partly nationalised nearly two years ago.

Reportedly, on September 29, 2008 Bradford & Bingley was taken into public ownership after the Financial Services Authority (FSA) declared the bank in breach of its threshold conditions for operating as a deposit-taker.

The retail deposit business was transferred to Abbey/Santander following a competitive sale process and the remainder of the business was retained in public ownership, to be wound down over time.

Later the government submitted a restructuring plan for Bradford & Bingley in accordance with EC state aid rules. This set out the government’s plan for the orderly wind down of the bank, in line with the summary business plan published on Bradford & Bingley’s website at the time.

In a statement, Neelie Kroes, European commissioner for competition, said: “The UK authorities’ market-oriented solution has avoided any disproportionate distortions of competition while enabling the preservation of the viable parts of the business.”