Co-op in Britannia BS takeover talks

baby_boomer

I suppose they're safeish because no-one has any cash to disrupt a cosy deal.

mysteronz

no bunse = no deal

mean_momma

All this money sloshing about in the system.... funny how none of it reaches the 'little people'........ looks as though they are putting a stop to shareholder windfalls but no doubt directors will still do ok, thanks

steady__eddie

Taken from here http://www.guardian.co.uk/money/2008/oct/11/banks4 published yesterday.

In August, chief executive Neville Richardson said the economic slowdown meant it believed the losses it had anticipated from some of its lending "may come about more quickly than expected, but we're taking the necessary action to contain them".

opinions4u

I think roughly translated this means "Britannia anticipates wholesale funding drying up and needs a bail out within the next few months".

Building societies are in a similar position to the banks. It's just that the share price doesn't give you the early warning!

If it goes to a vote for members it will be "in return for agreeing to this we will release the value of the business - nowt - the alternative is your savings disappearing down the toilet".

By the way, their loyalty scheme was worth between 0.1% and 0.5% on a savings account. Not enough to push any of their accounts in to a best buy position.

apt

Britannia have occasional offers that are not too bad. For the last two Novembers they've brought out a 7.5% fixed one-year regular savings account. But most of their accounts pay poor interest and will only get worse as they have already announced they are passing on the 0.5% cut to borrowers.

jack_spratt_2

This is really sorting out the customers who invest with a mutual because they believe in the mutual principle and those who are just in it to make a fast buck .
If anyone invested because they wanted to invest in a mutual organisation they would have no problem with this merger .
I myself support the idea of mutuality and the tie up makes commercial sense for both parties it gives the CFS a bigger customer base and gives the Britannia a stronger financial footing .
We must not forget that these are unprecedented times

martinman3

opinions4u wrote: »

I think roughly translated this means "Britannia anticipates wholesale funding drying up and needs a bail out within the next few months".

Building societies are in a similar position to the banks. It's just that the share price doesn't give you the early warning!

It seemed like the Britannia BS wanted to have their cake and eat it.
Perhaps the directors looked enviously towards Northern Rock or B&B and its "successful" mortgage business and wanted the same but without demutualising. For several years now they have favoured their borrowers over their savers, they didn't care because they raised the rest from the money markets. Once the legislation had been passed, changing the rules for building societies which Britannia had asked for, they could have raised most of the money they needed from the markets and grown the mortgage business even more.

Britannia BS is not a typical building society, I am a member and if it merged it would be no great loss.

System

If you had over 50k in savings in Britannia, would you say now's the time to move it? Do you rekon they are in trouble?

Have over 50K in fixed term/rate but if I move even part of it at this point will lose yearly bonus.

Advice ?

martinman3

candyflossing wrote: »

If you had over 50k in savings in Britannia, would you say now's the time to move it? Do you rekon they are in trouble?

Have over 50K in fixed term/rate but if I move even part of it at this point will lose yearly bonus.

Advice ?

Even if Britannia were in immediate trouble, and as far as we know they are not, your savings would currently be protected 100% as Brown/Darling have promised that no depositor in a UK bank/building society would lose their savings. The state of the banks and building societies in the UK is now being monitored closer by the FSA, about time too, and a merger would be forced on them if they were in a bad way.

Having said that, you should make a comparison of the loss you would have if you withdrew compared to the gain from the higher rate you could get elsewhere. That alone may be enough reason to move.