Back to BAGGING - Carpetbaggers return

skoolmaster

DOWNTURN 'SET TO TRIGGER BUILDING SOCIETY MERGERS'

KPMG, the financial services firm, has reported that the current housing downturn could trigger a wave of mergers among building societies as bad debts from mortgages rise and profits fall. The KPMG Building Society Database 2008 suggests that while the 59 remaining societies have so far managed to weather the economic storm, the second round of the credit crunch is now under way, thus posing further problems for the organisations.

'It's inevitable there will be some more consolidation as market conditions worsen

,' said Richard Gabbertas, a KPMG partner.

RayWolfe

Gosh! There's a surprise. I wonder how much the author of the report was paid to tell us the bleedin' obvious.

Oblivion

That should bring on a flurry of £35k FSCS guarantee threads. :rolleyes:

As for the return of carpet-bagging, I just wonder how many savers are left with old accounts where they haven't had to sign away their rights to CB handouts?

Dave.

steady__eddie

"I just wonder how many savers are left with old accounts where they haven't had to sign away their rights to CB handouts?"

Well you've found one here.

I have a couple of gaps in my passbook display cabinet which I'm trying to fill at the moment. I see that one of them (Chesham) currently has a one year bond on offer @ 6.5% which would fit the bill for 12 months but I can find no reference on their site to the terms of their charitable assignment clause.
Does anyone happen to know if it is absolute or the more usual 5 year job ?
I appreciate of course that to date, it has never been invoked.

derrick

steady__eddie wrote: »

"I just wonder how many savers are left with old accounts where they haven't had to sign away their rights to CB handouts?"

Well you've found one here.

I have a couple of gaps in my passbook display cabinet which I'm trying to fill at the moment. I see that one of them (Chesham) currently has a one year bond on offer @ 6.5% which would fit the bill for 12 months but I can find no reference on their site to the terms of their charitable assignment clause.
Does anyone happen to know if it is absolute or the more usual 5 year job ?
I appreciate of course that to date, it has never been invoked.

http://www.cheshambs.co.uk/consumer-information.html

Charitable Assignment

Chesham Building Society is a local building society catering primarily for the needs of residents in its operating area. We wish to bring the benefits of membership to increasing numbers of people in the future. We aim to achieve this objective by offering competitive rates on savings and mortgage products, together with a high standard of customer service.
The Society found that the service to existing customers was at times severely disrupted by the actions of speculators. To avoid such disruption the Society requires new investors to agree to assign to a charitable foundation any future windfall benefits they receive, in the unlikely event of a transfer of the Society's business to a bank or other company announced within five years of their accounts being opened.
The charity appointed by the Society to receive future windfalls is the Charities Aid Foundation (CAF), a UK registered charity governed by a Board of Trustees whose patron is HRH The Prince Philip, Duke of Edinburgh KG KT.

baby_boomer

Building societies will be less affected by the credit crunch because:

a) they don't have to raise money in the wholesale markets like the banks (and this has been the big credit crunch problem

b) they don't actually have to make a profit, unlike the banks, so they are better equipped to weather the storm.

Good luck to anyone who can be fagged to open all those accounts BUT

I guess any who are forced to merge won't have the funds to pay a decent windfall and will be able to use the credit crunch as an excuse to keep funds with the merged society "for the long term benefit of future generations of savers and borrowers" .

bristolleedsfan

steady__eddie wrote: »

"I Well you've found one here.

I have a couple of gaps in my passbook display cabinet which I'm trying to fill at the moment. I see that one of them (Chesham) currently has a one year bond on offer @ 6.5% which would fit the bill for 12 months .

Normally the only way into Chesham BS for non locals is either poor paying ISA or Save Direct which has a minimum of 2500 so the product u mention is a good route into the society assuming that u dont mind losing 0.50% ish of interest for 12 months.

Milarky

steady__eddie wrote: »

I have a couple of gaps in my passbook display cabinet which I'm trying to fill at the moment. I see that one of them (Chesham) currently has a one year bond on offer @ 6.5%

I've just joined by transferring £100 to open their ISA account for 5% from an existing provider. Chesham will accept partial transfers on their form. Ditto Buckinghamshire BS

steady__eddie

"Chesham will accept partial transfers on their form."

Never thought about taking that route, I'll bear it in mind for future reference when I need to fill another gap.
I went down to Aylesbury today with my driving license and recent bank statement, (the doctor told me that I should get out more) and did the deed anyway.
I was tempted to pop into Bucks while I was down there with a view to one of their 1 year bonds but I'm not keen on their absolute signaway :eek: