Bradford & Bingley (B&B) is to pay out a fee to Goldman Sachs for its collapsed funding deal.
The Sunday Telegraph reports despite US investors Texas Pacific Group (TPG) pulling out of a £179 million deal for a 23 per cent stake, the buy-to-let lender will still pay Goldman Sachs for advising on the deal.
TPG pulled out of the deal last week after B&B's debt rating was lowered.
B&B the eighth biggest UK bank - will now return to it initial plan to raise some £400 million through a rights issue.
It is thought some of the company's largest investors including M&G Investment Managers, Legal & General Investment Management, Insight Investment and Standard Life Investments will take control of the bulk of the stock.
The rights issue has an unchanged subscription price of 55 pence per share, and will be underwritten by Citi and UBS.