"Must every problem be dragged down to a "North/South" argument? Strangely, it seems to be only the Northeners who see it this way."

Thanks, best laugh I've had in ages!

Andy, Plymouth South, UK

What nonsense that being in the Euro would have stopped all this mess. The Dutch and Belgium governments are shoring up Fortis at this precise moment.

Ozzy, Kettering, UK

Well done Stephen of Holborn. In one post you managed to insult Northerners (by implying it's all our fault), Midlanders (by lumping them in with the North) and Londoners (by reinforcing the stereotype of them all being thick and self-obsessed with a knowledge that doesn't extend beyond Islington).

Steve, Altrincham,

The remaining building societies are doing all right. One of biggest is even based in the North Midlands - the Britannia, at Leek. It was the business model and management that failed in the new banks.

Frank Upton, Solihull,

'These self-certified mortgages, dubbed “liar loans”...'
If I lie to induce a contract and gain a financial advantage, that amounts to fraud and I have to wonder why such people are not pursued through the courts for any losses they create when defaulting. Fraud is theft and that is a crime.

m collins, Leeds,

Nice try Peter Fieldman, sorry to disappoint you but the eurozone has huge economic problems. The level of public debt against GDP across the Eurozone is even higher than US and the UK. Ours are around 40%, even Germany is over 50% and Italy near 100%. Its going to really ugly for you guys.

Nate, London, UK

Why not nationalise the savings, instead of selling it to a Spanish bank. Then let the rest go bust, why rescue morgages, they might learn then!

Andrew, Milton Keynes,

First Northern Rock now BB. Does this mean that the Govt now is now in danger of becoming a major buy-to-let landlord? Perhaps Gordon should just transfer it all to the public housing account and announce that the Govt have solved the housing crisis

clifford, reading,

With reference to the comments below, the story has a northern element because the Government has been keen to protect jobs in Labour constituencies - Newcastle, Bradford, Halifax etc.

Austin, London,

Another way at looking at it Stephen in Holburn is ...

Is this a Southern problem?

Halifax - Bust - based in South
Bank of Scotland - Bust - based in South
Northern Rock - Bust - based in South
Bradford and Bingley - Bust - based in South
Alliance & Leicester - Bust - based in South

Elliot, Aberdeen, UK

Building Society demutualisation ended up with little kids playing at grownups. Like Peter Rabbit the senior management should be given some camomile tea and sent to bed early. On the way they could pay back their last six years bonuses and half their overinflated salaries.

Stephen Green, Correns , France

Surely everyone knows that, to a Londoner, the 'Norf' starts at Watford.

Bill, Ramsey,

Far from bailing out with a parachute of public money the pilots of this financial disaster should be handcuffed to the controls as the burning wreckage goes corkscrewing into the ground. What utterly shameless scoundrels they are!

meredith, brighton, england

Peter in Paris is maybe right about needing more banking safeguards, but I doubt the Eurozone will protect anyone - where does Fortis do it's business? On another note are these new mergers safe or is the Abbey just getting a bigger stateroom on the Titanic?

John, Aylesbury, England

To Mr Stephen Jones from London, re this being a "Northern problem" - can you please tell me when Leicester, which is where Alliance-Leicester is based became part of the north.
Time, Mr Jones, to look at your map above Watford Gap.

Jamie Smith, Leicester, England

Let's just all understand: The "housing market" was turned into the Greatest Ever Pyramid Selling Scam - and it was powered along with Liar Loans. It was ALWAYS going to fail in the end. What is truly dreadful is that the vested interests wer so powerful that, only months ago, "prices only go up".

Isabel Fergusson, Salisbury, Wilts

The last time I looked, Stephen in Holborn, Leicester is in the East Midlands and is nearer to London (110 m) than the BoS in Edinburgh (340 m). So you have 1 in scotland, 2 in the North (Halifax is part of Bos anyway) & 1 in the Midlands. Conclusion = location has nothing to do with it

Carol, Leicester, UK

At least this will finally put an end to the fraudulent lending ("self-cert") and excessive buy-to-let expansion that we saw in the market thanks to B&B. All it did was push up house prices for the rest of us who wanted to buy a home rather than an investment. Shame the taxpayer is now on the hook.

MB, Edinburgh,

If Britain had joined the Euro UK banks and building societies would not be in this mess. Firstly safeguards would have been in place, secondly the people would be obtaining credit and mortgages at lower fixed rates. But City of London financiers only see as far as their own selfish interests

Peter Fieldman, paris, france

I would like to know what sort of bonuses were paid to B&B's chief executives recently, and whether they will be asked to hand them back.?

Thomas, Bristol, UK

Must every problem be dragged down to a "North/South" argument? Strangely, it seems to be only the Northeners who see it this way.

Cindy Small, london, uk

Perhaps a significant number of those 'buy to let' properties will come onto the market at prices more representative of their true worth. The market will thus continue to function with burnt fingers for the greedy (apart from the barrow traders from the city). BTW Stephen, Leicester - East Midlands

Bill Q, Derby,

Where is it written that a private company is totally removed from any responsability for its own actions? If I over-extend my own company will I get taxpayers money to cover my debt? I don't think so.

Tom Mein, Chorafakia, Crete

Stephen Jones should recall that Building Societies were founded "in the North" and so are based there but employed "Southern" managers and City wannabees.

At least Labour is fulfilling its 1983 Manifesto !

TomTom, Leeds, England

"Is this a northern problem?" you ask. No, its a "financial industry" problem. As we learned, the FSA (high paid southerners) preferred pushing paper around to actually doing their job properly, and couldn't be bothered to get off their backsides and travel outside London.

Anonymous, Manchester,

Is this a Northern problem?

Halifax - Bust - based in North
Bank of Scotland - Bust - based in North
Northern Rock - Bust - based in North
Bradford and Bingley - Bust - based in North
Alliance & Leicester - Bust - based in North

A coincidence or revelation of foolish management in North?

Stephen R Jones, Holborn, London, UK

I suspect that BB. actually bet on the idea that buy to let investors in rental property could add their investments to SIPPS. No doubt worried by the escalation in house prices, government did a U-turn which cost many people alot of money by itself. BB. was funded till 2009 and well capitalized!

Lang, London, UK

What a mess. A sorry saga of total and complete incompetence. You couldn't make it up !!

Roddy Nicolson, Shetland, UK

while it would be turmoil if one or more of these banks was allowed to go bankrupt, in the long term surely we are only saving up our problems for a rainy day? fair enough if stable banks can afford to pick up cheat assets, but global goverments are going to have trillions of pounds of liabilities.

will, grimsby, uk