Time to move your money from Barclays

joshuabelfast

rb10 wrote: »

But where would you move it to?

Barclays? To help support their next round of rate-fixing?

Natwest? Where it'll get lost in the ether that is their broken computer system?

Lloyds/HSBC? Thought to be next in line for rate-fixing fines?

Yes, the Nationwide executives are in line for large bonuses ... but how many directors of successful companies of Nationwide's size do not receive substantial bonuses? It's something that comes with the job.

What have the Nationwide directors done (or not done) for their members this year that means they do not deserve a bonus payment?

PPI mis-selling? Nationwide has set aside £103 million this year to compensate members mis-sold PPI - reason enough IMHO

opinions4u

joshuabelfast wrote: »

PPI mis-selling? Nationwide has set aside £103 million this year to compensate members mis-sold PPI - reason enough IMHO

Around 1.25% of the overall pot.

While the mutuals are rarely virtuous angels, their share of PPI mis-selling is a tiny pin !!!!! on the mosaic of menace that is dominated by a black horse.

joshuabelfast

opinions4u wrote: »

Around 1.25% of the overall pot.

and approximately one third of this years Nationwide profits.

The question was what have the directors of Nationwide done (or not done) to deserve their bonuses. I am simply pointing out that I think the PPI mis-selling (whilst not to the same extent as some banks) does not reflect well on the management of Nationwide or the culture in financial services companies whether bank or mutual.

rb10

joshuabelfast wrote: »

PPI mis-selling? Nationwide has set aside £103 million this year to compensate members mis-sold PPI - reason enough IMHO

Again, compare that to the other banks.

Barclays - £1.47bn
Lloyds - £3.2bn
HSBC - £745m
RBS/Natwest - £1.2bn

£103m is nothing. And it doesn't even mean much PPI was mis-sold - much of this will come from the costs of dealing with purely speculative complaints from the claims management companies that advertise on TV.

Nationwide's successful PPI claims to date are even lower than British Gas's - I didn't even know British Gas sold PPI.

joshuabelfast

rb10 wrote: »

Again, compare that to the other banks.

Barclays - £1.47bn
Lloyds - £3.2bn
HSBC - £745m
RBS/Natwest - £1.2bn

£103m is nothing. And it doesn't even mean much PPI was mis-sold - much of this will come from the costs of dealing with purely speculative complaints from the claims management companies that advertise on TV.

Nationwide's successful PPI claims to date are even lower than British Gas's - I didn't even know British Gas sold PPI.

rb10, the £103 million figure strips out the provision Nationwide has made for claims that are speculative and not upheld (I believe their original figure was somewhere in the region of £138 million if you include costs for speculative PPI complaints).

I don't know about the respective sizes of each of the financial institutions that have been discussed in this thread or the percentage of PPI claims - but it seems mutuals, whether the Nationwide, Yorkshire (N&P) or co-operatives like the Co-operative Bank need to demonstrate they have a different ethos. Nationwide is strong in many service and product areas, yes they need to make a profit, yes they need to innovate but they don't have to do it at the expense of the members, do they? and when they act against members interests is it unfair to ask directors to take some responsibility for this?

tomo21217

All this talk of safety isnt really justified though.
As per above, the British goverment covers you for £85k.

A quick look on wiki (I know) comes up with total assets of
Nationwide £2.02 Billion
Barclays £1,562 Billion.

With the Uk ecconomy around £1,400 Billion, I cant see safety being a issue.
*these figures are very rough

If people want to move due to eithics which is more what I can only see being the reason then something like co-op, or a local credit union is proberly the closest you will come.

However, what you will gain by having a more 'for the people' company, you may loose with less branches, less safe and functions from online banking, less streamlined systems (eg Barclays do debit card replacement in 2 days), less function for business accounts (invoice factoring etc) etc etc.

Dance with the devil for a easier life, or have a little more agro for a ethical bank.

opinions4u

tomo21217 wrote: »

All this talk of safety isnt really justified though.
As per above, the British goverment covers you for £85k.

A quick look on wiki (I know) comes up with total assets of
Nationwide £2.02 Billion
Barclays £1,562 Billion.

With the Uk ecconomy around £1,400 Billion, I cant see safety being a issue.
*these figures are very rough

If people want to move due to eithics which is more what I can only see being the reason then something like co-op, or a local credit union is proberly the closest you will come.

However, what you will gain by having a more 'for the people' company, you may loose with less branches, less safe and functions from online banking, less streamlined systems (eg Barclays do debit card replacement in 2 days), less function for business accounts (invoice factoring etc) etc etc.

Dance with the devil for a easier life, or have a little more agro for a ethical bank.

Badly run big falls hardest of all.

Well run small doesn't fall at all.

Nationwide's assets are in the region of £196bn. Your figure above is about 99% lower than reality.

The quality of those assets is more important than the size.


http://www.nationwide.co.uk/pdf/about_nationwide/annual_report2012.pdf#page4