Dunfermline BS Stability

baby_boomer

Scotsman - Dunfermline pension fund's £20m = 40% shortfall

The administrators are considering dumping it on the Pension Protection Fund but it looks like the Financial Services Compensation Scheme (ie savers) & the taxpayer will end up with the bill.

Professional Pensions - Dunfermline Pension fund makes initial PPF approach

The Pension Protection Fund is going to be swamped by a series of unmanageable bills over the next three years IMHO. And so bring to an end even the better final salary pension schemes which are its source of funding .

Our decades of living on the "never never" are going to come home to roost.

Milarky

baby_boomer wrote: »

Scotsman - Dunfermline pension fund's £20m = 40% shortfall

The administrators are considering dumping it on the Pension Protection Fund but it looks like the Financial Services Compensation Scheme (ie savers) & the taxpayer will end up with the bill.

Professional Pensions - Dunfermline Pension fund makes initial PPF approach

The Pension Protection Fund is going to be swamped by a series of unmanageable bills over the next three years IMHO. And so bring to an end even the better final salary pension schemes which are its source of funding .

Our decades of living on the "never never" are going to come home to roost.

It said on R4 this morning that the total deficits have increased tenfold in 12 months - and now stand at £220bn. They mentioned the PPF levy would be harder to find under such circumstances...

(Govt money into PPF soon?)

baby_boomer

Inevitably the Scottish press has a pop at the FSA for not protecting the Dunfermline and other BSs

Why should we pay building society executives between £250K and £500K and then expect them to be little better than ignorant & naughty children when it comes to assessing mortgage deals which are supposed to be their bread & butter ?

If they need the FSA to nanny them, wouldn't £100K (or less) be appropriate?

And in fact.

Telegraph - Building Societies ignored FSA warnings on lending for five years

"In a letter to the Chancellor on last month's collapse of Dunfermline, FSA chairman Lord Turner listed warnings made over five years from 2003 against "the dangers of commercial property lending", the risks of buy-to-let and "the dangers of mortgage book acquisitions".

Despite the FSA's concerns, Dunfermline was allowed to increase its commercial property book five-fold to £628m between 2004 and 2008 and buy mortgage books worth £467m from Lehman Brothers and GMAC. The watchdog finally intervened in October 2007 to prevent Dunfermline acquiring another £160m mortgage book from Credit Suisse...."

## - When are the Scots going to grow up and stop criticising England when the authors of this disaster hail from north of the border?

Count_Dante

Exactly. All criticism of the FSA for this issue is essentially like criticising parents of small children when they do naughty things. Except the small children are really highly paid executives of billion pound financial institutions.

baby_boomer

I've just noticed the funniest thing at the end of the Telegraph article.

".. Dunfermline's auditors, Deloitte & Touche ...were "concerned in 2007 that bad loan provisions might be too high, rather than too low". :rotfl: