Nigel Myer, a bank credit analyst at Dresdner Kleinwort, said the UK government has effectively "given a guarantee on all senior creditors of Bradford & Bingley" The guarantee becomes subject to European Union approval after six months "They intend for that continue to persist for all pre-existing obligations, but they can't promise it will without EU approval," added Myer.The continuation of these guarantee arrangements beyond six months will require the submission and approval of a restructuring plan in accordance with the European Commission's Rescue and Restructuring Guidelines. HM Treasury intends to submit such a plan shortly. In the credit default swaps market, dealers and other market participants are unsure whether the collapse of Bradford & Bingley constitutes a credit event, which would trigger payment of protection under CDS contracts. For Bradford & Bingley, "the government has specifically designed the rules so that it is not a CDS event," Myer said. On the other hand, the Financial Services Authority withdrew the bank's license over the weekend, which is "why there is no clarity".

After Gordon Browns Monday 29-08-08 'saving' of Bradford and Bingley to save all banks, all banks collapsed in price....
Royal Bank of Scotland Group 181.00p -12.98% 
Alliance & Leicester 274.25p -4.19% 
HBOS 142.00p -18.06% 
Lloyds TSB Group 217.25p -13.45% 

They fell the next day too...
Royal Bank of Scotland Group 179.00p -1.10% 
Alliance & Leicester 267.00p -2.37%
HBOS 122.4p -13.80% 
and on that day, 30-08-08, the Irish government guaranteed all savings in Irish banks, even to foreign depositers. Irish owned banks stock prices rocketed and english customers emptied english bank accounts to fund Irish owned bank accounts. The same day the FSA was to start an Open Probe Into Shorting of Banks - which is the artifical lowering of a share price

The nearest situation was the governments handling of Railtrack
Railtracks shares were suspended at £2.80 in 2001.The Government considered that the decision to put Railtrack into railway administration was valid and justified. Shareholders initially received no compensation nor were they promised any. Railtrack shareholders formed two groups to press for increased compensation.  Geoffrey Howe was elected Chairman in 2002 to seek compensation for shareholders. He stepped down a few months later when the Government offered 262p per share which was enough to convince Institutional shareholders. The Railtrack Action Group abandoned legal action after what was the largest class action ever conducted in the English courts - there were 49,500 claimants, all small shareholders in Railtrack.RT Group plc (in voluntary liquidation) has made a number of payments to shareholders during the winding up of the company's affairs.
December 2003 200p 
August 2004 43p 
December 2004 9p 
December 2005 8.5p 
and a payment of 1p per share in 2008.