London Scottish Bank enters administration

London Scottish Bank has been forced into administration due to a lack of cash.

The Financial Services Authority intervened to prevent the bank from taking any more deposits and Ernst & Young has been appointed as the administrator.

The bank specialises in mortgages for council tenants using the right-to-buy scheme and for those purchasing high-rise flats.

It announced in February that it was ceasing its lending business and would focus instead on its Robinson's Way debt recovery operation.

The government has pledged that all retail depositors would get their money back, even those over the £50,000 threshold.