Dunfermline BS Stability

baby_boomer

I like the guy. He is the most talented politician in the British Isles. But the financial crisis has left him diminished, and his dreams for Scotland undermined.

I actually support devolution - even though I take the !!!! out of it - because I believe that every country has the right to make its own mistakes and take responsibility for its own mess.

It's difficult to confine the politics of the case to Dunfermline issues, because this is one of the biggest Westminster v Holyrood issues in our memory.

But we probably ought to try.

Scottish politics, pure and simple, is better debated on DT with Fifer.

*MF*

Just want to record my thanks to baby-boomer for the work on this thread.

And slip in the thought that the eventual vote on whether Scotland ever gains independence takes place in Westminster - and perhaps when the full effects of the activities of Gordon Brown, Alastair Darling, Fred Goodwin, RBS, HBoS, Dunfermline show up in our taxes a bit down the line - added to other arguments about English subidies to Scotland ...

- eventually it may well be English votes that grant that independence.

Just a thought - and I won't digress further.

cheggers

Another one bites the dust, already a Nationwide member so when my current fixed rate bond with Dunfermline matures I'll close my account.

*MF*

Under the Banking Act 2009, Dunfermline’s retail and wholesale deposits, branches, head office and originated residential mortgages (other than social housing loans and related deposits) have been transferred to Nationwide. This follows a competitive process conducted by the Bank of England over the weekend of 28-29 March under the Special Resolution Regime provisions of the Banking Act 2009.

Source:

http://www.hm-treasury.gov.uk/press_32_09.htm

baby_boomer

Scotsman - Gordon Brown launches broadside against the stupid Dunfermline BS directors

Rarely can I have agreed more with the Prime Minister .

"Prime Minister Gordon Brown today branded Dunfermline Building Society an "author of its own mistakes" as the Government stepped in to lead a rescue sale and break-up of the ailing mutual. Nationwide Building Society will take on the core parts of Dunfermline under the deal, brokered at the weekend to save the society from collapse............

................Mr Brown rejected criticism of the Government's role.

He told reporters that all savers would be protected, adding: "Let's face facts – the Dunfermline building society is the author of its own mistakes: mistaken judgments, mistaken investments, mistaken policies.

"We have had to step in where the Dunfermline building society has failed, and we have stepped in in such a way that we can protect both the savers and give those people who depend on the building society for mortgages a way through for the future."

Milarky

"Mr Faulds told BBC Radio 4's Today programme that Nationwide was "a first-class operation" by which existing Dunfermline members would be "well served".

Well, most of us here know exactly what Nationwide can be like. On the basis of that statement alone you have to question all his other utterances...

Milarky

*MF* wrote: »

Under the Banking Act 2009, Dunfermline’s retail and wholesale deposits, branches, head office and originated residential mortgages (other than social housing loans and related deposits) have been transferred to Nationwide. This follows a competitive process conducted by the Bank of England over the weekend of 28-29 March under the Special Resolution Regime provisions of the Banking Act 2009.

Source:

http://www.hm-treasury.gov.uk/press_32_09.htm

What has happened the the Dunfermline's FCSC status under this transfer? Unaffected?

Also, whilst these powers are so new they wouldn't have been used in the cases of NR and B&B (both with shareholders) do they also apply to failed banks? Because it sort of implies they (the government) can now abolish share capital - whereas in the case of NR at least they are still officially 'looking' at residual share value?

Finally, where's the 'accountability' for all this, the Scottish-chaired (ask-no-questions) TSC?

baby_boomer

This is Money - Dunfermline rescued by Nationwide takeover

Comments from readers

"Gives Nationwide an even stronger hold north of the border. How much longer before it's "Bank of Nationwide"?

"Anyone else noticed that the bigger Nationwide gets, the worse its service gets"

"Considering Nationwide are getting the best bits, i.e the savers accounts, shoudn't they be paying windfalls to the savers?"

"May I start a campaign for England's independence from these thieving losers please?"

cvd

"Considering Nationwide are getting the best bits, i.e the savers accounts, shoudn't they be paying windfalls to the savers?"

In fact the government (taxpayer) will have to pay the Nationwide to take on the savers - they are liabilities. Any saver could walk in tomorrow, withdraw his savings and close his account.

It is the (good) mortgages which are the assets.

baby_boomer

cvd wrote: »

In fact the government (taxpayer) will have to pay the Nationwide to take on the savers - they are liabilities. Any saver could walk in tomorrow, withdraw his savings and close his account.

It is the (good) mortgages which are the assets.

Of course. I was merely reporting word from the street on a newspaper forum.

It was very funny on Question Time the other month when one of the celebrity guests thought savings were assets while pursuing a populist anti-banking line. It took the wind out of his sails when it was pointed out that he didn't know what he was talking about.

It will be interesting to see what Nationwide pays.

Britannia paid about 3% for Bristol & West savings & branches - which was reckoned to be way above what anyone else was prepared to pay.

It was once thought, it seems a lifetime ago, that Building Society mortgages might be worth 10% of their value if put up for sale.