FSA charade treats BS savers with disdain

baby_boomer

Building society "democracy" in action. Only one member is allowed a say at the FSA hearing to declare Derbyshire BS dead and buried.

Financial Mail editor

"......the FSA meeting seemed to be a charade. Although the hearing at the Britannia Hotel was attended by about 50 people (including Financial Mail), only three Derbyshire members turned up. Not surprising really, as the FSA decreed the meeting should be held mid-morning in the working week 120 miles from Derby.

Apart from the Press, those present included representatives from the FSA, Derbyshire (including boss Graham Picken), Nationwide and various hangers-on (lawyers, advisers and public relations experts).

Of this entourage, only Malcolm Waters QC spoke. The rest could have stayed at home, saving a fortune in travel and hotels bills that ultimately will be paid by the societies' members. Of three members present, only one, Joseph Yeomans, from Co Mayo, Ireland, was allowed a say.

Michael Solomon from Weybridge, Surrey, and Ron Steven from Whitwick, Leicestershire, were not allowed to speak, as they had failed to give written notice of their wish to do so..."

".....by rushing through this deal, [the FSA] has scandalously allowed Derbyshire directors - past and present - off the hook. Surely it would have been better if the FSA had demanded that those responsible for Derbyshire's neardemise - namely ex-chief executive Peter Richardson and ex-finance director Geoffrey Windebank --explain at a public meeting just how they managed to destroy a 150-year-old building society.

And the regulator could have asked how the pair were then allowed to walk away with compensation to die for: £302,000 in the case of Windebank and a £83,000 annual pension guaranteed for life for Richardson. A regulator with teeth would have thrown the book at the pair. Instead, it has allowed them to get off scot-free."

Milarky

As they used to say on The Fast Show "That's Amazing!"

Of course these sorts of events happen all the the time - disgruntled shareholders meetings etc - but even allowing for that it comes across as rank hypocrisy.

Suppose the man from Mayo hadn't 'asked permission' in advance? Then no member of Derbyshire would have had a say. Of course this was played by 'FSA rules' rather than the rules of a Derbyshire Building Society EGM, where bringing your passbook (plus some ID) ought to entitle you to a say.