Southsea bubble has burst

SOUTHSEA Mortgage and Investment Company, a tiny bank with just 250 depositors, is being wound up by the Bank of England, making it only the second lender after Dunfermline Building Society to be closed down under the Special Resolution Regime.

The central bank said Hampshire-based Southsea had been closed following a request from the Financial Services Authority.

The Bank of England said: "The failure of Southsea follows a deterioration in its financial position as a result of management decisions and the firm's specific business model. The firm had deposits of 7.4 million."

Accountancy firm BDO has been appointed as the liquidator.