Mortgage lender Bradford & Bingley (B&B) is to be nationalised, the government has confirmed.

The government will take control of the bank's £50bn mortgages and loans, while B&B's £20bn savings unit and branches will be bought by Spain's Santander.

Prime Minister Gordon Brown said the move showed the government would "do whatever it takes to ensure the stability of the UK financial system".

The Treasury said taxpayers were being protected from any B&B losses.

The move came on another eventful day of global financial turmoil:

* Wachovia, the fourth-largest US bank, was bought by larger rival Citigroup in a rescue deal backed by US authorities

* Benelex banking giant Fortis was partially nationalised by the Dutch, Belgian and Luxembourg governments to ensure its survival
* The Icelandic government took control of the country's third-largest bank, Glitnir, after the company had faced short-term funding problems
* Shares in Europe and Asia fell sharply, while in the US, Congress voted on a $700bn (£380bn) plan which aims to bail out Wall Street and ease the credit crisis

BBC