Dunfermline BS Stability

Milarky

The Nationwide has (what?) 2 million mortgage customers - the Dunfermline 35,000? (I know that only a percentage of Nationwide's own 'existing' customers continue to qualify for the SVR but that still leaves maybe 600,000 to 1 million that do)

So they couldn't 'afford' to absorb those customers on standard terms?

Well maybe that's the Nationwide 'shutting up shop' on any more friendly takeovers ('mergers') of other societies?

Trollfever

"A spokeswoman for the Dunfermline said: "Customers are now members of Nationwide so will they will be invited to attend Nationwide AGM [in Birmingham, enjoy the trip ]"


:rotfl:

Count_Dante

Some info on the bodged software project:
http://www.eweekeurope.co.uk/news/-30m-it-project-helped-drag-dunfermline-down-506

Mostly quite techie, but the impression remains of a building society pushing too hard and taking on too high a risk.

baby_boomer

FT Adviser - BSA Director General Adrian Coles' extended holiday in the Maldives did not help a resolution of the crisis

For it is Adrian who has been responsible for brokering deals involving troubled BSs in the past.

However anyone who knows Adrian will be aware that he is not Superman :rotfl:

baby_boomer

Financial Mail on Sunday - The one paper that was in advance of the story every step of the way - HUMBLE PIE FOR BOSSES AT DUNBOASTIN

"I trust that various figures involved in the rise and sudden fall of Dunfermline Building Society - as well as those who defended the Scottish institution until the bitter end - have been consuming vast quantities of humble pie.


The man with the biggest slice must surely be Jim Faulds, chairman of Dunfermline until last Monday and who late last year had the temerity to talk glowingly about departing chief executive Graeme Dalziel.


'His stewardship has been firstclass,' he crowed. 'He has led the society through an era of growth and leaves it stronger than he found it.' Three months later, Dunfermline had been brought to its knees by £1bn of toxic assets that Dalziel had put on to its books.

Then there's Willie Rennie, Liberal Democrat MP for Dunfermline & West Fife, who less than a month ago was waxing lyrical about the building society.

In a debate on the expense of the Financial Services Compensation Scheme to the building society industry, he said: 'Other institutions have chosen to travel a riskier route over the past decade or so. They have made substantial profits during that time, but those profits have proven unsustainable. Meanwhile, societies such as Dunfermline have steered a much steadier course involving lower profits and have turned out to be much stronger institutions in the long term as a result.' Oh dear.

And finally there's John Goodfellow, who recently 'retired' as chief executive of Skipton, but not before procuring a handsome parting present of £781,000. Now a spokesman for the sector, he assured everyone during the height of the Dunfermline storm that the building society industry always looked after its own - implying that the Dunfermline would be taken over in the same way as the troubled Cheshire and Derbyshire.

Well, Goodfellow was right in that Nationwide has now taken over the good bits of Dunfermline, but taxpayers have had to stump up £1.6bn to bridge the yawning gap between Dunfermline's assets and liabilities.
Never again should we take at face value the boasts of the building society industry about good old-fashioned prudence....."

baby_boomer

Scotsman - Call for Dunfermline executives to face a Westminster grilling

Well someone needs to ask them why they lost leave of their senses and racked up the highest ratio of commercial lending for a building society on the back of the lowest capital protection for any building society .

I can't work out whether it was collective hubris, director ignorance, bonus chasing or the idea that the Scottish Parliament, combined with Dunfermline's position as Scotland's premier BS, would always be there to protect them if anything went wrong.

Maybe they were a victim of devolution?

Milarky

Scottish Building Society has written to all members today pointing out how good its results had been (well, signed off in January, anyway) and how, in so many ways, its was 'unlike' the Dunfermline in its lending practices and choice of investments....

(a case of schaudenfrade?)

baby_boomer

Nice spot.

I guess they didn't like Dunfermline's growing claim to be the no. 1 "Scottish BS".

In fact Scottish BS has, for a decade, paid the worst savings rates of any building society in the UK. (Mean gits.)

People in glass house shouldn't start blowing their own trumpet..........

.....or something like that .

bristolleedsfan

baby_boomer wrote: »

In fact Scottish BS has, for a decade, paid the worst savings rates of any building society in the UK. (Mean gits.)

.

Its regular saver is currently paying 4% including bonus, with maximum deposit per month an apparent generous 1000.00.

BB and/or Milarky, can you see any point what so ever in keeping a Scottish BS account open for Merger hoping reasons. ?????????

baby_boomer

Surely you don't still believe in that carpet-bagging nonsense, blf :eek: ?

The Scottish RS account is worth having for the 4% - especially since you have a get out clause of a penalty free withdrawal if they cut the rate.

Scotsman - Nationwide is the front runner to buy the Dunfermline social housing loan book but only with a further sweetener from the taxpayer