The fate of Chelsea Building Society is decided this week...

alanq

Sky News has just reported that Chelsea BS is in "advanced talks" with Yorkshire BS.

baby_boomer

Looks like Jeff Prestridge & Financial Mail on Sunday have another scoop.

Yorkshire Post

Yorkshire Building Society in merger speculation

"Two of the UK's biggest building societies are understood to be in talks over a possible merger, it was reported today.

Yorkshire Building Society and Chelsea Building Society, the UK's second and fourth largest societies respectively, could announce plans for a tie-up as early as this week, according to Sky News..."

No-one was available for comment.

alanq

Chadsman wrote: »

... IMHO it will be a cold day in Hades before any BSoc sells itself to a PLC no matter what the state of their finances

It wouldn't be the first time. Remember Bristol & West BS which allowed itself to be taken over by the Bank Of Ireland but kept its brand? It later became part of a building society again when Britannia BS bought it.

Correction: Only part of the business was sold to Britannia BS.

baby_boomer

According to this RPoints link, the timing relates to the fact that a December merger would enable to Chelsea board to avoid accounting to their members for their disastrous year

They wouldn't have to either produce accounts or face a members AGM .

With that perverse incentive in front of the board, no Chelsea member can be sure of anything

Nor is there likely to be a vote as the FSA will waive it through. So much for member democracy at mutuals .

There should have to be a vote at Yorkshire BS, but who would bet against the FSA getting round that in order to get the Chelsea off its over-crowded radar screen and away from any need for government subsidy?

Noble_Savage

baby_boomer wrote: »

Nor is there likely to be a vote as the FSA will waive it through. So much for member democracy at mutuals .

From the Yorkshire website:

Any merger would require the formal approval of both the Yorkshire and Chelsea savings and borrowing members. The merger would also be subject to confirmation by the Financial Services Authority (FSA).

(My use of bold text).

Chadsman

alanq wrote: »

It wouldn't be the first time. Remember Bristol & West BS which allowed itself to be taken over by the Bank Of Ireland but kept its brand? It later became part of a building society again when Britannia BS bought it.

I was meaning the sale of a current Building Society

Milarky

baby_boomer wrote: »

There should have to be a vote at Yorkshire BS, but who would bet against the FSA getting round that in order to get the Chelsea off its over-crowded radar screen and away from any need for government subsidy?

Yes, that's right, since YBS is about 2-3 times the size of Chelsea, rules 'normally' require a ballot of both sets of members where the ratio is less than 5 to 1. FSA won't play ball in all likelihood..

baby_boomer

Thanks, AS ever, for the information about the proposed vote, NS.

Here's some more from RPoints about the dreadful mismanagement and immoral extraction of excess salaries, bonuses & pensions from Chelsea BS

D1zzy

baby_boomer wrote: »

Looks like Jeff Prestridge & Financial Mail on Sunday have another scoop.

Yorkshire Post

Yorkshire Building Society in merger speculation

"Two of the UK's biggest building societies are understood to be in talks over a possible merger, it was reported today.

Yorkshire Building Society and Chelsea Building Society, the UK's second and fourth largest societies respectively, could announce plans for a tie-up as early as this week, according to Sky News..."

No-one was available for comment.

Looks like its the "Stamford Bridge BS" then....:D

Ypaymore

More info here: http://www.ft.com/cms/s/0/0ec67ecc-deb7-11de-adff-00144feab49a.html