posted on Mar, 28 2009 @ 11:34 AM
Scotland's hard earned reputation for financial probity and ... prudence ... takes another shocking blow as its largest mortgage lender, the
Dunfermline Building Society, collapses with a £26 million annual loss. A government announcement is expected Monday.
This follows substantial government bailouts to Royal Bank of Scotland and Halifax Bank of Scotland. Dunfermline Building Society has taken
substantial losses with its involvement with GMAC and Lehman Bros.
The British Government has decided not to directly bail out this institution, deciding instead to take responsibility for its mortgage and loan
accounts, the savings side of the business is to be sold off. The Scottish Government has offered a capital injection from public funds, however this
seems destined not to be approved by the British Treasury.
Dunfermline lies in the fair Kingdom of Fife, PM Gordon Brown's homeland. I'm surprised he's letting this institution collapse rather than using
yet another bailout, perhaps he's taking notice of the warnings from the Bank of England governor about the current imbalances in government income &
expenditure, perhaps he's wary about being accused of favouritism by saving jobs in his own constituency.
Either way, it's another nail in the coffin of the Scottish financial sector and a setback for those who advocate independence from the United
BBC News - Dunfermline Building Society Collapses