Dunfermline BS Stability

baby_boomer

BBC's Peston backs the Nationwide deal and the MSE line

"The Treasury will take over £1bn of commercial property lending and acquired portfolios of self-cert and buy-to-let mortgages.

Nationwide is - in many ways - the natural buyer of the good parts of Dunfermline Building Society. It is the biggest building society, by far. And it has a strong track record of absorbing weaker societies."

## - Cobblers. Its takeover of the Portman was a long term administrative nightmare :rotfl:

"What should reassure Dunfermline's members is that it also preserves the brand names of the societies it buys - so there are still Cheshire and Derbyshire branches, even though these two societies have recently been bought by Nationwide.

But Nationwide will not be taking on the bits of Dunfermline that are seriously loss-making.
These are commercial property loans and portfolios of buy-to-let and self-cert mortgages - with a gross value of £1bn.

These less attractive assets will be transferred to the public sector; they will become yet another banking burden on taxpayers.

And as the dust settles on a financial crisis that is relatively small but politically fraught, the big unanswered question is why Dunfermline took such risks that ultimately cost the society its independence."

## - Smooth work, Robert. You back your No.10 insider sources to the hilt and don't even have to ruffle too many Scottish feathers into the bargain .

The way it works is that BBC Scotland has different bloggers plugging a more "Scottish" line

Interesting comment on Peston's Blog from SocratesDundee

" How can the Nationwide "buy" a building society that is owned by its members? Who is doing the selling?

baby_boomer

From former boss Graeme Dalziel's own blog

"Graeme Dalziel is recognised as one of the most 1) successful and 2) influential businessmen in the country today

:rotfl: Sweet nemesis :rotfl:

1) No
2) Yes - for all the wrong reasons

FraudBuster

Many thanks for the updates b_b.

As they had no sub-prime lending I wonder what is in the toxic debt package!

baby_boomer

Scotsman - 12 people turned up at the SNP locally inspired demo

"....Mr McGally, a member of the Dunfermline, said he was disappointed the society's members had not been consulted about its future.

And he said: "From what the chairman Jim Faulds said on television yesterday neither he nor his board had been kept in the loop.

"That's scandalous and a gross discourtesy."

While he said the takeover would remove the immediate uncertainty for staff, Mr McGally added: "It's another Scottish financial institution whose headquarters will perhaps disappear from here."

His wife Alice McGally was one of the organisers of this mornings protest. Mrs McGally, an SNP member of Fife Council, said she was "absolutely appalled" at what had happened to the Dunfermline.

"I'm a member of the society, nobody consulted me," she said.

"We're letting people know that we're not going to be taking this lying down. We're considering seeing if a legal challenge can be made by the society's members."

:rotfl:
:rotfl:
:rotfl:

Just google FSA hearing and Derbyshire BS, Cheshire BS, Scarborough BS etc. to see how the FSA !!!!es on member protests from on high!

There could be a slight disconnect between the SNP membership & the SNP leadership.. I've underestimated Gordon & Nu Labour. They've got the SNP skewered on this one. The long term message to Scots is, if you want a help from a Labour government in Westminster, you'd better damn well elect a Labour government in Edinburgh! In the meantime, just watch your impotent SNP First Minister squirm while you come to terms with the realities of devolutionary power politics.

Remember the "Arc of Prosperity" that an independent Scotland could join according to Salmond?

Ireland/Iceland/Scotland :rotfl:

*MF*

baby_boomer wrote: »

<snip>

Interesting comment on Peston's Blog from SocratesDundee

" How can the Nationwide "buy" a building society that is owned by its members? Who is doing the selling?

I think the answer falls to be dealt with under the Special Resolution Regime under the provisions of the Banking Act 2009 ...

Inter-alia:

The SRR gives each of the FSA, the BoE and HMT “stabilisation powers” to transfer shares, other securities, property, rights and liabilities of a bank deemed to be failing ....

Altho called the Banking Act it includes Building Societies.

edda

Megalomaniac wrote: »

I do wonder if they will be kept as a seperate organisation to the Nationwide. In Aberdeen, the two branches are literally opposite each other on Union Street and obviously wouldn't make much sense keeping both if Dunfermline was 'consumed'. I'm sure there are other Scottish high streets where this is a similar case.

I think this will be a wait-and-see scenario.

A local town has 2 Nationwide branches within 300 yards of each other - one was previously Staffordshire (then Portman) Building Society. These have been trading like this for a while and even the staff send customers 'round the corner' if very busy.

Whilst about 2-3 miles away, in the next town centre, the only Nationwide branch is closing down! Where's the logic in that?

cvd

" How can the Nationwide "buy" a building society that is owned by its members? Who is doing the selling?

If they really feel they "own" it, then they should be prepared to shoulder its losses and get out their cheque-books.

baby_boomer

Nonsense.

They followed their fiduciary duty of looking after the future prospects of existing Nationwide members .

They played brinkmanship with the Treasury, the government, the Scottish Parliament, the Chairman of the BSA and won!

Those Portman director young Turks have earned their spurs .

*MF*

cvd wrote: »

If they really feel they "own" it, then they should be prepared to shoulder its losses and get out their cheque-books.

They don't get that choice when either the FSA, The BofE, or HMT step in - see my post #126 above.


*EDIT*

For that matter - neither does the taxpayer.

kostigovs

baby_boomer wrote: »

Scotsman - 12 people turned up at the SNP locally inspired demo

"....Mr McGally, a member of the Dunfermline, said he was disappointed the society's members had not been consulted about its future.

And he said: "From what the chairman Jim Faulds said on television yesterday neither he nor his board had been kept in the loop.

"That's scandalous and a gross discourtesy."

While he said the takeover would remove the immediate uncertainty for staff, Mr McGally added: "It's another Scottish financial institution whose headquarters will perhaps disappear from here."

His wife Alice McGally was one of the organisers of this mornings protest. Mrs McGally, an SNP member of Fife Council, said she was "absolutely appalled" at what had happened to the Dunfermline.

"I'm a member of the society, nobody consulted me," she said.

"We're letting people know that we're not going to be taking this lying down. We're considering seeing if a legal challenge can be made by the society's members."

:rotfl:
:rotfl:
:rotfl:

Just google FSA hearing and Derbyshire BS, Cheshire BS, Scarborough BS etc. to see how the FSA !!!!es on member protests from on high!

There could be a slight disconnect between the SNP membership & the SNP leadership.. I've underestimated Gordon & Nu Labour. They've got the SNP skewered on this one. The long term message to Scots is, if you want a help from a Labour government in Westminster, you'd better damn well elect a Labour government in Edinburgh! In the meantime, just watch your impotent SNP First Minister squirm while you come to terms with the realities of devolutionary power politics.

Remember the "Arc of Prosperity" that an independent Scotland could join according to Salmond?

Ireland/Iceland/Scotland :rotfl:

There is no one amongst Ian Gray and his cronies that has the ability to make the First Minister squirm.

He is head and shoulders above anything labour in Scotland can offer. And BTW I am not a SNP supporter