Nationwide - Newspaper article

caveman38

Can anyone throw light on the article in one of the broadsheet newspapers today. I only got to see a glimpse of the logo on "what the papers say" on Breakfast TV. May be nothing - just curious.

Baldur

Maybe this FT item?

amcluesent

That doesn't sound too bad. Just been adding up my exposure to Nationwide and it's a tad above £50K - HSBC account now being opened just in case.

baby_boomer

Perhaps they'll use access to extra capital as a means of "buying" more building societies for £0 with the government's approval.

It makes it easier for the regulator if the FSA only has to keep an eye on one BS rather than 56.

Pssst

This is just paranoia in the extreme. Nationwide are Big and Mutual and do not have any big exposure to the bad debts. IMHO all UK savers would do well to bolster UK building societies by redistributing their savings around several UK institutions and forget about "foreign" banks. Support the UK economy,not those of foreign countries. Its survival of the fittest. The Penguin munchers supported their people and their economy when they dumped on the UK savers. In a crisis its look after your own.

ray123

Psst, that is an excellent point. Perhaps you could start a thread about how we should support UK institutions - I would be more than happy to support this issue...

opinions4u

Pssst wrote: »

This is just paranoia in the extreme. Nationwide are Big and Mutual and do not have any big exposure to the bad debts. IMHO all UK savers would do well to bolster UK building societies by redistributing their savings around several UK institutions and forget about "foreign" banks. Support the UK economy,not those of foreign countries. Its survival of the fittest. The Penguin munchers supported their people and their economy when they dumped on the UK savers. In a crisis its look after your own.

1) They have 30% exposure to wholesale markets. If that dries up, they're in trouble (doesn't matter if it's 30% or 60%, if there's a hole that big in a lender's balance sheet they are insolvent). That isn't to say it will dry up - indeed, the government bailout should mean that they are as safe or wobbly as the rest of the British banks and building societies. Don't move your money out, but don't assume that because they are mutual they are safer than anybody else! Bad debt ratios at Nationwide and HBOS are similar (much better than industry average).

2) Nationwide has a high percentage of its savings balances in fixed rates. These customers are rate tarts who will cost the building society a lot to retain on maturity. This could force them to increase their reliance on wholesale markets or HM Government.

3) Most importantly, the amount of penguin munching in Iceland is limited, due to the typical penguin residing at the southern end of the planet. About as far away from Iceland as you can get!

Pssst

Peguins or herrings..they are all the same to me and thats all they'll be catching and munching for the next 3 or 4 decades after this fiasco settles down...!

Pssst

ray123 wrote: »

Psst, that is an excellent point. Perhaps you could start a thread about how we should support UK institutions - I would be more than happy to support this issue...

Oh go on then...i will..!

thumshie

think you meant Puffin, not Penguin......Tasty...;)