An unprecedented Sunday of frantic negotiations in Britain, Europe and America resulted in two bank bailouts and a tentative agreement to prop up the world’s financial institutions.

Santander, the Spanish banking giant that owns the Abbey is to take over the running of Bradford & Bingley’s £20 billion savings business and its 200 branches. The bank’s £50 billion mortgages and loans business is to be taken into public ownership.

Alistair Darling is expected to confirm the takeover and nationalisation at 7am today before the stock markets open, barring any last-minute hitches.

In the US, congressional leaders reached an outline agreement on a $700 billion bank bailout after days of often bitter negotiations.

This morning, the one major obstacle to the deal - opposition from Republicans in the House of Representatives - appeared to have receded. After a three hour meeting, the leader of the House of Representatives, John Boehner, said the plan was a "giant improvement", adding: "We have made it pretty clear to our members that we are supporting the bill."

Eric Canter, a vocal conservative critic of the original plan, said that the new proposal "lessened the burden on the tax payer."

Even as the deal edged closer, another major US bank teetered on the brink. Wachovia Corp, the country’s fourth largest retail bank, was in advanced discussions early this morning to sell itself to Wells Fargo, thus staving off collapse.

Meanwhile Fortis, which employs 85,000 in Europe, was at the centre of a three-country partial nationalisation after BNP Paribas pulled out of talks. The Belgian, Dutch and Luxemburg governments invested €12 billion in the banking and insurance group last night, taking a 49 per cent stake.

B&B spent yesterday in talks with the Treasury, Financial Services Authority and Bank of England – and a series of bidders. The Times understands that at one point serious consideration was given to an offer from HBOS, which is being taken over by LloydsTSB.

Gordon Brown met Mr Darling in No 10 on Saturday morning to approve the B&B nationalisation. Treasury officials worked all weekend on the deal. The Bank of England has apparently been gathering information on B&B for several weeks and had planned a firesale of the assets.

The nationalisation was criticised by Conservatives, whose party conference began in Birmingham last night, but they will not stand in the way when it comes before the Commons.

The US rescue plan could be signed into law by President Bush this week. After marathon negotiations between Hank Paulson, the Treasury Secretary, and leading Republicans and Democrats, a tentative deal was struck. The details were posted online and will be voted on by the House of Representatives as early as today and by the Senate later this week. Both John McCain and Barack Obama said that they would almost certainly back the deal, despite its unpopularity with voters, because the risks of inaction were too great.

The deal would give Mr Paulson $350 billion to start buying toxic mortgage-related assets immediately, with the remaining $350 billion to be approved by Congress. There would be curbs on executive pay and severance packages, a taxpayer stake in the plan, the ability for the government to renegotiate loans for struggling home-owners and strict oversight.

Warren Buffett, the respected investor, had warned many of those involved that, without a rescue package, the entire US economy could collapse.

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