Why was Nationwide at the taxpayers' handout meeting?

Sapphire

If Nationwide is not in financial difficulty, why did a representative from the building society attend the meeting? (So I've heard.)

Just curious. :cool:

(I mean the meeting at which the bailout of the banks with taxpayers' money was agreed by our fine leaders.)

GeorgeHowell

Perhaps it was to show the rest how it should be done.

rocket_socks_2

HSBC and Abbey even went, even though they have both released press statements saying that they have no intention of dipping into it, suppose they are all just "rallying around"

DocMartin

If I was invited to a meeting where twenty squillion quid was on the table I think I'd go - just to have a look..

I did wonder about this myself actually but now I know that HSBC were there as well I feel a bit more relaxed.

I suppose the words "Trough" and "Snouts" sum it all up?

Pssst

Simply because they are a major institution,are mutual,are responsible,have large assets,low risks and recognise the need for for unity and to support the Treasury in its endeavors to instill confidence in the British Economy. Dont get paranoid..!

casper_uk

It was Brown's ace in the hole, atleast when one (nationwide) can afford to pay back and starts, he can say the plan wasn't a total failure lol

My_head_hurts

But as they are a Building Society, they cannot offer shares to the British Government.
The Treasury statements I have seen refer to them being one of the "eight" who will be eligible for funding (why only eight?) and clearly they cannot be eligible.
The only way the government can become a shareholder in Nationwide is to become a depositor.

cvd

The only way the government can become a shareholder in Nationwide is to become a depositor.

I believe the Nationwide would issue permanent interest bearing shares (PIB) which the government would buy. This is one of the standard ways for building societies to raise money

There is a press statement on the Nationwide web site which says:

“We are pleased that these initiatives extend to the whole of the building society sector, in addition to eligible banks in the UK, as this provides a fair and equitable arrangement for all.”

Link:
http://www.nationwide.co.uk/popup/fsa.htm

So it applies to all building societies.

Count_Dante

Nationwide had a higher CDS rating than any of the big banks, as of 2 days ago. Still inside the same ballpark, but they are not whiter than white by any means.
http://www.thisismoney.co.uk/bank-strength

As an aside, I can see the CDS rating of a bank or building society being quoted alongside the interest rate of their savings accounts after all this madness.

iamesbo

I think there was a free buffet.

RayWolfe

Brilliant ..............