Nationwide swoops on battered rivals

KTF

I would imagine so.

Cozworth806

Why the Nationwide again? It will effectively scrap both of the smaller BS's into the behemoth, whereas it would have been far better to get a smaller group together to create a larger organisation, so the local branches aren't scrapped (is there anywhere much that doesn't have a Nationwide branch) and some of the backroom staff could be kept on. (Maybe Kent Reliance, Newcastle, etc?)

As it is I would be looking for this being referred to the Competition Commission!

(I have a Derbyshire account but am not hopeful that this will lead to a massive payout)

cashprincezac

Cozworth806 wrote: »

Why the Nationwide again?
As it is I would be looking for this being referred to the Competition Commission!

(I have a Derbyshire account but am not hopeful that this will lead to a massive payout)

In the current climate this will not be refferred to the Competition Competition.....and rumour has it there is more to follow over the coming months....now is the time for us carpetbaggers to benefit after a couple of slow years!!:beer:

noh

cashprincezac wrote: »

In the current climate this will not be refferred to the Competition Competition.....and rumour has it there is more to follow over the coming months....now is the time for us carpetbaggers to benefit after a couple of slow years!!:beer:

And in the link given by bristolleeds fan

Indication here is that Nationwide BS have been asked by the FSA to step in, Mr Peston believes that their will neither be a vote nore a merger payout.

http://www.bbc.co.uk/blogs/thereport...re_and_de.html

rumour has it that there will be no payouts

Nigel

Milarky

bristolleedsfan wrote: »

Indication here is that Nationwide BS have been asked by the FSA to step in, Mr Peston believes that their will neither be a vote nore a merger payout.

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/09/fannie_freddie_cheshire_and_de.html

If Robert Peston says it is so then it must be - because he's undoubtedly been [strike]talking to[/strike] tipped off by the Regulator following incomplete reporting by the BBC news article

The harsh reality of the decline in the housing market means that the members of the Derbyshire and the Cheshire should not expect a windfall or any kind of payment from this deal. Nor will they get a vote on whether the mergers will go through, as normally happens in consensual deals.

I have learned that the FSA will use its power to force through the transfer of ownership fairly speedily - because any period of uncertainty about the ownership of a bank or building society right now is fraught with risks.

What 'powers' are they then?

bristolleedsfan

Cozworth806 wrote: »

Why the Nationwide again?

Im suprised that Brittannia havent been offered Cheshire BS by the FSA, surely Yorkshire BS should have had the opportunity to have taken one of them over as well. :think:

I cant imagine the other Top 5 Building Societies being happy if Nationwide is offered both the named societies at virtual no cost.

opinions4u

bristolleedsfan wrote: »

Im suprised that Brittannia havent been offered Cheshire BS by the FSA, surely Yorkshire BS should have had the opportunity to have taken one of them over as well. :think:

I cant imagine the other Top 5 Building Societies being happy if Nationwide is offered both the named societies at virtual no cost.

The cost to Nationwide's balance sheet of propping up failing competitors could be significant. If this is the case with those in question, it makes sense for members of the smaller societies to get nothing.

Let's face it, 200 Halifax (HBOS) shares were worth £1,470 when they floated 11 years ago. Those are now worth £550. You would expect the value of an average holding in a small building society to be worth less. If that building society cannot afford to fund loans, it is not far off Northern Rock's value.

Better to collect nothing but retain membership rights in Nationwide, which may succeed in future, rather than remain a member of a failing building society.

EdInvestor

bristolleedsfan wrote: »

Im suprised that Brittannia havent been offered Cheshire BS by the FSA

Britannia itself is said to be somewhat shaky.

bristolleedsfan

EdInvestor wrote: »

Britannia itself is said to be somewhat shaky.

Saw an article today that Brittannia BS plans to shut some branches that are "under used"

Jennifer_Jane

How can the FSA dictate what the Derbyshire and Cheshire members - who own the Companies - want? Is there a possibility that the FSA can dictate whether the merger goes ahead.

How about the Nationwide members? Wouldn't they get a vote on this?

Regards
Jen
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