The Financial Services Authority held talks with the big five clearing banks about bailing out B&B to avoid shattering confidence in a sector already hit by the Northern Rock debacle.

It is believed the FSA played a key role in putting in place the deal where private equity group TPG bought a 23 per cent stake in B&B for £179million. This effectively made the emergency plan redundant.

However, HBOS, HSBC, Lloyds TSB, Barclays and Royal Bank of Scotland have agreed to sub-underwrite the remaining £248million being raised through a repriced rights issue at 55p a share. They have provided £20million apiece to do so.

B&B shares rose 2bp to 72p yesterday.

The banks declined to comment. An FSA spokeswoman said: “We were in constant discussions with a number of organisations.”

Reports suggested HSBC volunteered to take over underwriting had one of the leads, Citi­group and UBS, pulled out after B&B’s shock profits warning.