WBBS will have to be rescued

Savers at West Brom will not lose a penny and it should be business as usual for mortgage borrowers.

But sources close to the society have now confirmed that it was "hopeful of a rescue."

There have been rumours for weeks about the West Bromwich Building Society being in trouble.

The society operates 46 branches and has about 350,000 customers.

It has 850 staff, including 350 at its head office in West Bromwich High Street.

It is due to publish its financial results on Monday, which are expected to show a huge impact from the recession, with substantial losses.

The society, the UK's eighth largest, has consistently tried to fend off rumours of a rescue or takeover.

This has including claims that the Treasury had put advisors on standby for a Government-backed Dunfermline-style rescue, nationalising the West Brom and selling off its assets.

One option is that it could be broken up, with its savers transferred to another society and its assets taken over by the Bank of England under the Special Resolution Regime.

But the West Brom's source, involved in the talks, is adamant that it would remain as a brand name and would not be broken up or its branches disappear from the high street.

The source said: "We are hopeful that a rescue will be put together in the next few days."