EU approves Bradford & Bingley rescue plan

BRUSSELS (Reuters) - The European Commission approved on Wednesday a rescue plan for mortgage-lender Bradford & Bingley that was one of a string of efforts by European authorities to limit contagion from the U.S. financial crisis.

Authorities notified the EU's state aid regulator on Tuesday of their 50-billion-pound purchase of Bradford & Bingley's mortgage portfolio and the sale of its deposits and branches to Spanish bank Santander.

"The Commission was able to decide within 24 hours that the state aid measures comply with EU rules on rescue aid," the EU executive said in a statement.

"UK authorities have committed to submit a restructuring and/or liquidation plan within six months, which will be examined by the Commission under its rules on restructuring aid."

In a separate decision, the EU Commission extended its probe into the restructuring plans for stricken German state bank WestLB.

However the EU executive said in a statement it was confident of reaching an agreement with the German authorities.

"An in-depth investigation provides a good opportunity for discussing the plan submitted in August in greater detail and finding a solution to ensure the long-term viability of WestLB," EU Competition Commissioner Neelie Kroes said.

(Writing by Darren Ennis; Editing by Dale Hudson)