"At least five societies to fail" - Analyst

baby_boomer

Telegraph

"Ralph Silva of TowerGroup, the leading financial services research firm, said that up to 15 building societies could be forced to merge within the next year or so but that at least five others would fail on the lines of Dunfermline Building Society...."

Quite a dramatic prediction.

Only the Big Daddy of all BSs, Nationwide, is safe from either merger or failure in his book.

Of course the more that are saved by the FSCS, the worse future savings rates will be for everyone .

baby_boomer

Banking Times - FSA to consult with building societies over risk management - Consultation period ends 5 September

"The Financial Services Authority (FSA) has launched a consultation aimed at ensuring that building societies with “less traditional” business models have the risk management systems and skills they need.

The regulator’s retail managing director, Jon Pain, says: “Our approach is very simple; the more diversification, the higher the level of management skills and systems and controls the FSA will demand from the firm"...........

.....................The FSA is now taking an interest in building societies’ business models, which should reflect the sector’s reputation for responsible and cautious lending but could contain some nasty surprises.”

BBC - BS rules to be tightened

What is it about the FSA that brings to mind horses and stable doors?

This consultation could also be the occasion of the FSA giving a nudge in the direction of a few mergers. Fewer BSs = less regulation for a beleagured FSA to do.

theGrinch

dont be silly, its a global recession that started in the USA first and the UK is wholly innocent of any bad lending practice or lack of supervision, so we are fine and dandy so Im told.

Doomcow

more doom mongering pls.

baby_boomer

Sunday Times - Skipton builds up war chest

Skipton BS is grooming 3 subsidiaries for sale, including Connells, to strengthen its balance sheet and take advantage of weak rivals.

Apparently it has its sights set on Newcastle BS, although is not in the frame to rescue West Brom.

[## Skipton could have sold Connells for £1bn in 2007 but missed the boat. Now it looks more like a fire-sale to keep the FSA happy ]

withnell

baby_boomer wrote: »

[## Skipton could have sold Connells for £1bn in 2007 but missed the boat. Now it looks more like a fire-sale to keep the FSA happy ]

Not really a fire sale if they;re using the proceeds to make other acquisitions!

baby_boomer

Would you sell an estate agency in today's climate?

opinions4u

baby_boomer wrote: »

Would you sell an estate agency in today's climate?

God yes. I certainly wouldn't buy one though!

I would guess that they use the estate agency primarily to source mortgage business.

As the funding isn't there to support the lending attracted by the estate agent, why keep the operation which is all cost and no income?

theGrinch

baby_boomer wrote: »

Would you sell an estate agency in today's climate?

depends if they can get a better return on the recycled funds.