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

christella

i think we should get a pay out as we have to vote yes or no

boomerangs

christella wrote: »

i think we should get a pay out as we have to vote yes or no

Dream on. A payout from where? The Chelsea is bust. This isn't a merger, it's a takeover to rescue the Chelsea.

Cozworth806

I read with interest that Yorkshire is wiping £200m off the balance sheet to clear the bad debts from Chelsea's balance sheet, and given that it will only expect to make £30-40m pa savings that is a major timescale to even break even.
I also noted that Chelsea Chairman (ex Nationwide) is leaving the group having only been in post for about 6 months. I wounder what his payoff will be and if that had any sway on his decision to merge?

I am a Yorkshire member and feel these merger/takeovers are not often in the interest of the "buyer", and this is no different. Not sure where the logic is when the Chelsea could fail and be picked up more cheaply risk free

premierfella

Cozworth806 wrote: »

I am a Yorkshire member and feel these merger/takeovers are not often in the interest of the "buyer", and this is no different. Not sure where the logic is when the Chelsea could fail and be picked up more cheaply risk free

I have accounts with both. The standard cited logic is that if the other building societies stood by and allowed another society to fail, this could damage the sector as a whole and see a run on them. Whether such a scenario would impact the likes of Yorkshire or Nationwide is debatable, but the smaller societies would quickly become vulnerable to failure.

Its interesting that Yorkshire have stepped in this time, whereas the Dunfermline was subject to a rather messier outcome earlier in the year.

baby_boomer

D1zzy wrote: »

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

Don't know if you write for the Evening Standard, or whether the Standard reads the site, or great minds think alike - but that's exactly what the Standard suggests the new society is called!

hansi

melbury wrote: »

If there is a merger do you think there will be any payout for existing Chelsea customers?

I have had an account with them for years which I opened when everyone was on the carpetbagger bandwagon. However, I have hung in there, so it would be nice if there was some kind of payout.

No, there is no payout.

hansi

melbury wrote: »

No I don't suppose it is very realistic in the current climate - never mind. I wonder who will take them over.

They're not being taken over, they're merging with YBS.

steady__eddie

I received my "important documents enclosed" letter yesterday from Yorkshire, and a further two identical ones today. I currently only maintain one account with them. I would venture to suggest that any "significant cost savings" will "be realised through the removal of duplicated activities" if "the level of service we currently provide to our members" is maintained.
I wonder if the postman will deliver any tomorrow.

Mithos

premierfella wrote: »

I have accounts with both. The standard cited logic is that if the other building societies stood by and allowed another society to fail, this could damage the sector as a whole and see a run on them. Whether such a scenario would impact the likes of Yorkshire or Nationwide is debatable, but the smaller societies would quickly become vulnerable to failure.

Its interesting that Yorkshire have stepped in this time, whereas the Dunfermline was subject to a rather messier outcome earlier in the year.

True. But I also think Yorkshire get something they've wanted for years. You only have to look at either website branch locations and its obvious Yorkshire will finally have a more southern presence


I have had accounts with both Building Societies, and have always greatly favored Chelsea, rates are typically better and I can't fault the service, writing in twice to praise it!

The letter came from Chelsea today, and it was all quite calm, I don't doubt that the FSA have put pressure on them and they have some problems. But ultimately (and this might be very unpopular, bringing on a cascade of negative responses) I'm very tempted to vote No to the merger. Its all sentiment talking, but as a long time member I've been through a lot with them, the staff, including the directors could have given in several times before now but they've kept striving to carry on (Their emblem is a lion of all things ), it just seems an exceptional waste of a well respected institution. And here is the one opportunity to preserve that.

Still if the talk above is anything to go by it really wont make a difference which way the voting goes. Such a pity.


P.S I also apologise to baby-Boomer for thinking the Daily Fail and The Financial Mail were the same paper.

baby_boomer

Dontcha just luv the letter from the Chelsea board.

Why is the Chelsea merging with the Yorkshire?
".....disappointing results arising from a range of factors."

Translation.
"Your board, in search of extra bonus payments for itself, was stupid & self-interested enough to invest in both Iceland and the fraudulent end of the buy-to-let market without bothering with basic due diligence."

How dare they gloss over their own failings like this .

I like the Chelsea the way it is; why should I vote for the merger?
"Without the merger capital preservation would be the highest priority for the Chelsea..."

Translation.
"Your board has screwed up so much that the Chelsea doesn't have a hope in hell of offering any decent products in future and would struggle just to survive & the FSA has told us that it doesn't want to waste its valuable time constantly checking on whether we are solvent."

BTW we hope members don't mind funding our board's collosal pensions and regular Caribbean holidays. After all, they worked so very hard to fill their own pockets at your expense:rotfl: