Building Societies

dunstonh

none of the banks would touch Northern Rock unless the taxpayer underwrote any losses !

Lloyds made enquires to buy Northern Rock prior to them being nationalised. The Govt rejected it on competition grounds. Slightly ironic given that had they let Lloyds get Northern Rock then the Govt would have avoided that debacle, consumers would not be as paranoid as they are now and Halifax would probably still be running alone rather than Lloyds getting the bigger fish.

Once NR had failed no-one wanted it (at sensible terms) because it was damaged goods. That may be changing though as NR seem to be actively marketing for new business again.

SCOTTYDOG

I am right in assuming that the FSCS scheme protects the first £70K if the account is in joint names? Is there any truth that this threshold is to be increased soon?
Scottydog

cvd

The best coverage of building societies by far is in the Financial Mail on Sunday. Articles on www.thisismoney.co.uk

IMHO banks are safer than Bsocs because they have shareholders who can be asked for money to recapitalise if they have problems. Bsocs and other mutuals have no external sources of capital and end up having to be bailed out - or docking members funds, as at Equitable Life - when they run into trouble.

There is little difference in the business models re funding these days between the banks and bsocs.

This is peculiar post. You recommend the articles in www.thisismoney.co.uk. Then state your opinion which does not agree with theirs. Their assessment is that the current riskiest are the Icelandic BANKS.

Also, in the current febrile market conditions, it is clearly not possible for a bank in difficulties to ask shareholders for money to recapitalise.

In fact all these comparisons that "mine is better than yours" are absurd - there are some good building societies and some not so good; there are some good banks and some not so good. Both types of institutions have recently provided us with basket cases.

opinions4u

SCOTTYDOG wrote: »

I am right in assuming that the FSCS scheme protects the first £70K if the account is in joint names? Is there any truth that this threshold is to be increased soon?
Scottydog

Yes and yes (but no confirmation as to when!)