Derbyshire BS woes ... more to follow?

PauliPauli

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSL1849335420080118

Don't have any savings in Derbyshire, (but do in "similar" West Bromwich BS)

Prob good chance they will be swallowed up by Nationwide round mid year when things get worse for them

Pauli

Fella

Could be an ironic reversal of the Northern Rock scenes.

Derbyshire BS announce they're in trouble & the BBC shows footage of people queuing halfway down the street.......all lateral-thinking carpetbaggers desparately hoping to Open an account & Deposit.....

Liz_the_Whizz

PauliPauli wrote: »

Don't have any savings in Derbyshire, (but do in "similar" West Bromwich BS)

Prob good chance they will be swallowed up by Nationwide round mid year when things get worse for them

Pauli

My carpetbagging account is ready and waiting;).

purch

Definately not the last

The Ratings Agencies have over-rated Debt and Paper issued by Banks and Building Societies for many years.

Milarky

The society attracted record savings balances last year and 83 percent of its lending was funded by customer deposits, and 88 percent of its mortgages are prime, it said. Salt, its specialist lending brand, has grown strongly since being launched in November 2005

Well that looks healthy to me. They simply won't be able to lend any more (on the back of money market borrowing) at the moment. And I would have thought it's easier for a 'SME' building society to put on deposits in proportion to their size than it is for a high street bank with mortgage exposure (eg Alliance and Leciester with is 'new money' 7% bond) to do the same?

The credit crunch surely affects building societies far far less than banks.

Nationwide? After their botched takeover of the Portman? (And remember, that NW wanted Portman for its mortgage book - not the extra savers. They said this would bring the enlarged society extra profits. Well, it would have done if the property boom had kept on going. But that 'dash for growth' now looks a bit mis-timed, so NW is probably far more affected by the credit crunch.)

Old_Slaphead

Fella wrote: »

Could be an ironic reversal of the Northern Rock scenes.

Derbyshire BS announce they're in trouble & the BBC shows footage of people queuing halfway down the street.......

Been there, seen it, done it - Feb 1971. Queueing round the block on Irongate Derby. Nationwide (or Co-op or whatever they were called) I believe helped with short term funding.

cheggers

Let hope we get a decent windfall if Nationwide takes them over, the Portman windfall was just a joke.

purch

88 percent of its mortgages are prime

By what measure ?

The clearest thing that the 'credit crunch or sub-prime fiasco' has shown is that the ability to measure risk and reward in relation to actual or perceived asset values is totally lacking within the Banking industry

Fella

cheggers wrote: »

Let hope we get a decent windfall if Nationwide takes them over, the Portman windfall was just a joke.

Specially once you put it on your self-asssessment. Practically felt like a net loss.

PauliPauli

purch wrote: »

By what measure ?

The clearest thing that the 'credit crunch or sub-prime fiasco' has shown is that the ability to measure risk and reward in relation to actual or perceived asset values is totally lacking within the Banking industry

I have to agree.. when i first read the article i just nonchalantly read over the quoted figures "inhouse data" = " lies damned lies and statistics"

bristolleedsfan

Derbyshire says 5.50 1 year fix is a "great rate"

and that 5.25% 2 year fix is a "even higher rate" :wall: :wall:


http://www.thederbyshire.co.uk/Savings_Portfolio.aspx?id=190&ekmensel=2152299f_24_28_btnlink