Nationwide taking £500m despite "not needing it"

ManAtHome

Aren't Nationwide doing the same as HSBC (and possibly Barclays) - increasing their reserves to a 'prudent' (govt currently recommended, but possibly forced some time soon) level from sources other than the Bank of Troosers..?

vbrindle

They are probably taking the money to cover nervous savers pulling their money out and stuffing the cash under their matress.

:rotfl:

KorkyKat

The ongoing integration of Derbyshire and Cheshire societies may shed some light on the reasons for their loan.

Joe65_2

Well as they're only supposed to be acting in the interests of their Members, surely it's to distribute to Members.
:beer:
Cheers Gordon

Joe65_2

nicholbb wrote: »

It does make sense for Nationwide to take the cash needed or not. When in a recession it makes sense to grab cheap debt where and when it is available, especially now because in the Credit Crunch Cash is King.

For Building Soicieties it's the nearest thing to a Student Loan - only to be paid back when they get a proper job.:j

bristolleedsfan

Hungerdunger wrote: »

I notice from this Guardian article that my local BS (Swansea) has a grand total of two mortgage accounts in arrears! May be a case of "small is beautiful", (although unfortunately they don't offer great rates on savings)

Swansea havent been short of cash to lend out to their six morgagees. ( joke :rotfl: ) Minimum initial savings investment of 5000.00 for non swans has been in force for a long long time.

Milarky

£500 million of government money to 'help' (I shouldn't say enable) Nationwide buy Cheshire and Derbyshire? What's wrong with this government that when it comes to 'helping the poor' they first have to create agencies to 'find the poor'? (Gordon Brown as a latter-day Robin Hood with outsourcing?)

Etccarmageddon

Milarky wrote: »

£500 million of government money to 'help' (I shouldn't say enable) Nationwide buy Cheshire and Derbyshire? What's wrong with this government that when it comes to 'helping the poor' they first have to create agencies to 'find the poor'? (Gordon Brown as a latter-day Robin Hood with outsourcing?)

wakey wakey!!! They're not taking taxpayers' money





(yet!)

mystic_trev

Etccarmageddon wrote: »

wakey wakey!!! They're not taking taxpayers' money





(yet!)

No they're not!

Nationwide are raising the extra capital on the money markets not from the Government! They have to raise this extra Capital as they've been told to by the FSA to bulster their reserves - same as Barclays.

LardyCake

The Telegraph article (link in the OP) talks about the money being raised via issuing PIBs (Permanent Interest bearing Bonds?).

Can anyone explain how this issue would probably work (ie: would they be offered to Nationwide members at issue price or would the lot be "sold" to brokers and only available at market price).