Bradford & Bingley is nationalised Press Association, Monday September 29 2008 The global credit crisis claimed its latest victims as the Government seized control of ailing mortgage lender Bradford & Bingley. The second nationalisation of a UK bank in seven months came alongside a state bail-out of Belgium's Fortis and a takeover of US bank Wachovia by Citigroup. The FTSE 100 Index slumped more than 5% - with banking stocks blitzed - as investors also awaited approval for 700 billion US dollar (£387 billion) plans to buy toxic debts from ailing financial institutions in the US. B&B's fall into public ownership after more than 150 years of history puts £50 billion - including £41 billion in mortgage loans - on the public balance sheet. It follows Northern Rock's nationalisation in February and comes just two weeks after a £12.2 billion rescue takeover of Halifax Bank of Scotland by Lloyds TSB. Prime Minister Gordon Brown said the Government had taken "decisive action", but the head of the Financial Services Authority (FSA) warned there could be more turmoil to come. "We are not necessarily right at the end of this process," Lord Turner told the BBC. B&B was squeezed by the credit crunch hiking its funding costs, and the housing market slowdown casting doubts over its main buy-to-let business. The firm has seen bad debts and arrears soar, lost millions on complex mortgage-backed investments, and had its investment status downgraded - making it more expensive to do business. While B&B's mortgages are in public ownership, its savings business and branches - with 2.7 million customers and £20 billion in deposits - have been sold to Spain's Santander for £612 million. Copyright (c) Press Association Ltd. 2008, All Rights Reserved.