| The panic spreads while Congress dithers. |
Citing a spokesman, the report said the treasury and the Financial Services Authority and the Bank of England are assisting Bradford & Bingley to consider the implications of the recent financial turmoil on the business. Shares of B&B , which is facing a loss of confidence in the wake of profit warnings and twice restructuring a capital raising plan, have hit new lows in recent days. Its problems were made worse by the recent downfall of Lehman Brothers Holdings Inc. and by renewed rating downgrades, calling into question its ability to fund itself, the Journal reported.
The report said more details on the talks would be announced before Monday's market open, citing a person familiar with the situation.
Options for the lender include nationalizing the bank, taking it over and selling off parts or all of its assets or finding a private sector solution, which is thought to be the government's favored option, the Journal reported.
Media reports have said the government could merge Bradford & Bingley with Northern Rock, the U.K. lender that was nationalized in February, the Journal reported.