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Dunfermline BS Stability
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amethystcash
Posts: 122 Forumite
Just wondering what people's thoughts are on the stability of the Dunfermline BS given that they are set to post a significant loss. My FIL has significant savings there and wondering if we should be convincing him to move some elsewhere - he's old-school and doesn't really understand about compensation limits and banks going bust etc so doesn't really feel there is a problem.
Just wondering what people think - is Dunfermline BS still a safe place for savings?
Just wondering what people think - is Dunfermline BS still a safe place for savings?
MFW Challenge (Tgt Date Nov 07): ACHIEVED FEB 07!
Mthly Savings (Tgt 60% of Inc): Average 41.67% (but we have just paid for a new kitchen!)
Savings Goal £500k (Target Date 50th B'Day Nov 17): 30.41%
Mthly Savings (Tgt 60% of Inc): Average 41.67% (but we have just paid for a new kitchen!)
Savings Goal £500k (Target Date 50th B'Day Nov 17): 30.41%
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Are his total savings with the Dunfermline under £50k? If so, given what you say about him, I wouldn't worry. No Building Society has gone under in the current crisis. If they are having significant problems they will probably be taken over by a bigger society, as happened with the Cheshire and Derbyshire."The trouble with quotations on the Internet is that you never know whether they are genuine" - Charles Dickens0
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It's rumoured that if there was a takeover, the likely candidate would be Yorkshire BS.0
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There's also this possibility rumoured - http://forums.moneysavingexpert.com/showpost.html?p=19935789&postcount=13It's rumoured that if there was a takeover, the likely candidate would be Yorkshire BS.0 -
No B/S has EVER gone down in the sense that depositors have lost anything.Hungerdunger wrote: »No Building Society has gone under in the current crisis.0 -
amethystcash wrote: »Just wondering what people's thoughts are on the stability of the Dunfermline BS given that they are set to post a significant loss. My FIL has significant savings there and wondering if we should be convincing him to move some elsewhere - he's old-school and doesn't really understand about compensation limits and banks going bust etc so doesn't really feel there is a problem.
Just wondering what people think - is Dunfermline BS still a safe place for savings?
does he have more than 50k in it? is it joint savings for 100k protection?RayWolfe wrote:No B/S has EVER gone down in the sense that depositors have lost anything.
consider this before the question is raised.Mr & Mrs Doomcow Wedding Fund: £10200/£18000 (by 04/2012) (spent £2000)
meiow meiow purr meep merp purr urble purrup
requires further financing0 -
Does anyone want to take it over? I can see why they wouldn't. It would reduce their capital ratios - at a time when capital is like gold dust - and also take on commercial liabilities which are impossible to predict. (Why would anyone trust the Dunfermline board's assessment after the lies they issued on 21 December 2008 about the society being in a strong position?)
But don't worry, because it will soon blow up into a big political issue between Alex Salmond and Gordon Brown - so some taxpayers' money, hopefully Scottish, will probably help to prop it up.
That would plunge the new combined society into an £18m loss for 2008. Why should we want to put the relatively decent interest rates at YBS at risk in 2009?It's rumoured that if there was a takeover, the likely candidate would be Yorkshire BS.
Relying on either the FSCS or the taxpayer is fairer than lumbering another society's members with toxic assets since it spreads the burden more widely.
I also reckon the BS movement might be in the mood to give the government one in the eye in retaliation for their disproportionate share of the FSCS levy for bailing out Iceland & B&B.0 -
This is how mutual societies act !!they would step in and rescue the under preforming society!! keep it in the family so to speakDoes anyone want to take it over? I can see why they wouldn't. It would reduce their capital ratios - at a time when capital is like gold dust0 -
From what I have read a number of BSs have looked at a merger and walked away. Must have looked at their books and thought 'no way'. I'm from Dunfermline and I'm embarrassed at the situation this BS finds itself in. There was simply no need to get involved in the nonsense lending they engaged in recently.0
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Thanks for all the replies.
FILs savings are well over £50k and just in his name but no amount of persuasion to get him to review things has worked so far!!
We will keep trying and hope the worst doesn't come to the worst in the meantime!MFW Challenge (Tgt Date Nov 07): ACHIEVED FEB 07!
Mthly Savings (Tgt 60% of Inc): Average 41.67% (but we have just paid for a new kitchen!)
Savings Goal £500k (Target Date 50th B'Day Nov 17): 30.41%0 -
Typically, 2% of a savings' institution's customers have over £50k.amethystcash wrote: »Thanks for all the replies.
FILs savings are well over £50k and just in his name but no amount of persuasion to get him to review things has worked so far!!
We will keep trying and hope the worst doesn't come to the worst in the meantime!
These 2% will have, give or take, a third of the overall savings held within that institution.
If a significant number of savers with more than £50k withdraw down to £50k a previously stable building society that has suffered a modest loss could be brought to its knees.0
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