Scramble to save building society

Scramble to save building society

news.bbc.co.uk

Scotland's largest building society is to be put on the market by the government after it effectively collapsed with a massive loss.

It was hoped the Dunfermline could continue with a government bailout of between £60m to £100m.

But the regulators have decided it is no longer viable, with a £26m loss expected to be announced next week.

(visit the link for the full news article)


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Oh right, so it's ok to save the banks in mainland Britain but not viable to save Scotlands largest building society....

hmmm you know which side your bread is buttered, dont you Mr. Brown.

This is yet another victim of this so called credit crunch and put this in line with what's going on with the new accounts people are being forced into and fleeced from it makes you wonder why anyone wants such a big player to go...

The tri-partite regulators - the Bank of England, the Financial Services Authority (FSA) and the UK government - have forced the sale of the Dunfermline, after it emerged a multi-million pound loss was expected and further problems were likely to emerge.

So you have forced the sale.. cool... guess you know who it will benefit once all the customers move their money to the banks/societies that are now plying for trade like sharks fighting fro scraps of the dead in the ocean.
And there were further problems too? Well we got some news for you.. even these banks that are still operating are still a problem... not so much for you but at least for the average joe.



news.bbc.co.uk
(visit the link for the full news article)

When the Northern Rock 'breaking news' hit, the Bank of England and the government didn't anticipate the wave of panic that hit the Daily Mail reading contingent of savers and so they acted too late.

With Bradford and Bingley, it could be argued that they acted too early because they were worried about there being a Rock-esque run and subsequently being lumbered with another nationalised bank and so sold the savings business to Santander, begrudgingly keeping the mortgage book under the Treasury.

Poor Dunfermline BS, now the tide has turned and the 'public' are against tax payers 'bailing out' the banks and so they are going to left to flounder.

There is no consistency.

I wouldn't be surprised if this building society is being used as an example for two important reasons 1) to show that the government would protect ALL of the savers' investments rather than just the standard £50,000 protected under the FSCS and so restore confidence in the government while at the same time, 2) to underline (just in case we have forgotten...) the world financial crisis and so create a tangible reason to bring in whatever reform Brown in looking for in the future, starting with G20.

Creates the impression of a caring, sharing UK government while at the same time highlighting the global problems.

Also, to be honest, it is in Scotland so Whitehall doesn't really care - it's not a building society that is on every high street so it won't really create much panic in the Daily Mail readers - but it will serve a purpose.

Feel sorry for the people it will directly affect, the staff and savers at Dunfermline BS though, horrible times for them.