B&B shareholders step in to plug gap

Bradford & Bingley’s major shareholders were today stepping in to salvage the lender’s £400m (€505m) funding plan after a US private equity firm walked away from the deal.

Texas Pacific Group, which was due to buy 23% of the company as part of a wider funding package, announced last night it was withdrawing its £179m (€226m) cash injection after the lender’s investment status was downgraded by a ratings agency.