British authorities notified the EU's state aid regulator on Tuesday of their 50-billion-pound ($89 billion) purchase of Bradford & Bingley's mortgage portfolio and the sale of its deposits and branches to Spanish bank
"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.
In a separate decision, the EU Commission extended its probe into the restructuring plans for stricken German state bank WestLB, which had to be protected by 5 billion euros in public-sector guarantees after risky investments it made turned sour amid the global crisis.
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.
The Treasury said it would take over B&B's 50 billion pound mortgage portfolio and sell its deposits and branches to Spanish bank