UK's FSA says taking "close interest" in B&B

AIX-EN-PROVENCE, France, July 6 (Reuters) - The chairman of Britain's Financial Services Authority (FSA) said the regulator was taking a "close interest" in UK bank Bradford & Bingley (BB.L: Quote, Profile, Research).

B&B on Friday increased its rights issue to 400 million pounds ($794 million) after U.S. investor TPG Capital pulled out of buying a stake as concern deepened about the UK bank's business plan.

"We have taken a close interest in it," FSA Chairman Callum McCarthy told Reuters on the sidelines of a business conference in this southern French city.

Asked whether the FSA would continue to monitor Bradford & Bingley closely, McCarthy replied: "Of course."

(Reporting by Sudip Kar-Gupta; Editing by Erica Billingham)