Dunfermline Building Society in crisis with £26m loss

mzqa395

http://news.scotsman.com/latestnews/Dunfermline-Building-Society-in-crisis.5086664.jp

Megalomaniac

I'd be happy if the Yorkshire took it over, but wouldn't be happy if Nationwide did - I just moved my ISA to Dunfermline and wouldn't want to see Nationwide somehow grind away at the interest rate I am getting. Still, at least it doesn't sound like they are going to 'fail', just be acquired.

premierfella

Interesting. I would have thought the two most likely options if the society were in trouble would be Nationwide (stretched - not in financial terms - given recent "mergers") or trying to join the Co-op/Britannia deal (which would be my preference).

bristolleedsfan

premierfella wrote: »

Interesting. I would have thought the two most likely options if the society were in trouble would be Nationwide (stretched - not in financial terms - given recent "mergers") or trying to join the Co-op/Britannia deal (which would be my preference).

Sundays paper spoke long same lines, Scots tend to have a problem with anything English. :eek:

http://www.sundayherald.com/business/businessnews/display.var.2495481.0.dunfermline_building_society_plays_down_merger_talk.php

lynzpower

Co-operative gives practically 0% on savings , be aware.

baby_boomer

Megalomaniac wrote: »

Still, at least it doesn't sound like they are going to 'fail', just be acquired.

I don't immediately see who would want to acquire them & their losses. The Fife MPs are running to Gordon (a fellow Fife MP) for assistance.

opinions4u

What is it about Scottish based financial instituations?

456789

Maybe RBS should take them over and rename the new entity as the 'Gordon Brown bank of fail'

premierfella

Part of the losses will be the FSA levy I guess that has sent many of the smaller building societies into the red in 2008. It would set a negative precedent if they became the first building society to claim under the government scheme being utilised by the banks, which is I think the only thing they will find Gordon offering.

I get the "stay Scottish" thing - but if they are not allowed to stay independent (as I suspect applied to Derbyshire and Cheshire amongst others), their Scottish branch coverage must be worth having for the new southern-biased soon-to-be "Supermutual" and must be the least-worst option?

baby_boomer

Any sensible buyer potential would wait to see what the bidding war between government in Edinburgh & Westminster produces in the way of inducements.

It's not as if there won't be other mutuals coming up for £0 in the near future - with probably fewer liabilities.

premierfella wrote: »

the FSA levy I guess ...has sent many of the smaller building societies into the red in 2008.

Actually the smaller mutuals have done OK.

It's the large/middling ones with commercial property portfolios / investments in Iceland / buy-to-let interests which are struggling.

The FSCS levy is a red herring that the ones in trouble are blaming.

bristolleedsfan

baby_boomer wrote: »

The FSCS levy is a red herring that the ones in trouble are blaming.

http://www.guardian.co.uk/business/2009/mar/20/nationwide-compensation-anger