Banks win fresh concession on ringfencing rules

princeofpounds

Not that building societies are immune from bankruptcy. As the fate of the Dunfermline demonstrated.

Loads of building societies went under in the credit crunch, but were just merged relatively quietly into a stronger entity. For example YBS took on a few smaller societies after the credit crunch.


Many building societies have gone under in the past, and many of the so-called mergers have been used to bail out problems, just as for the commercial banks.


https://www.bsa.org.uk/information/consumer-factsheets/general/mergers-and-conversions-into-plc-banks

antrobus

Thrugelmir wrote: »

Wasn't that at the single handedly caused by Nick Leeson?

More or less. It's the kind of thing that can happen when you make the same person responsible for both carrying out trades and accounting for said trades.

antrobus

princeofpounds wrote: »

Loads of building societies went under in the credit crunch, but were just merged relatively quietly into a stronger entity. For example YBS took on a few smaller societies after the credit crunch....

That is perfectly true.

In the same way that Lloyds was strong-armed into 'merging' with the HBOS basket case.