Banks left holding B&B shares baby

BANKS and institutional investors supporting a cash call by Bradford & Bingley will buy the 72 per cent of shares not placed in the lender's rights issue, after an ailing stock price made it impossible to find other buyers.

The move will leave six of Britain's largest banks – understood to include Royal Bank of Scotland and HBOS – with around 20 per cent of their embattled smaller rival, following a deal struck last month when a credit rating downgrade forced B&B to restructure its emergency £400 million cash call for the second time.