Another Bank Bail Out - Dunfermline Building Society

[Fittster]

From the BBC (bd Broadcasting Communism)

"The Treasury ruled out a UK Government bailout of up to £100m after regulators said the move was not viable.

The sale of the Dunfermline, which was founded in in 1869 and has 34 branches, was forced by the tri-partite regulators - the Bank of England, the Financial Services Authority (FSA) as well as the UK Government.

Defending the decision, Chancellor Alistair Darling said a bailout was not realistic and insisted savers' money would be protected."

BBC spin for there masters

Unfortunately the reality is that taxpayers are likely to end up owning the bad debts and the dodgy assets, or at least guaranteeing the deposits. Thanks Gordon another success for your regulation.

[Simpo Two]

Fittster said:

Unfortunately the reality is that taxpayers are likely to end up owning the bad debts and the dodgy assets, or at least guaranteeing the deposits.

So if the BS is bailed out the taxpayer gets caned, and if they're not bailed out the taxpayer gets caned? They can't both be right surely?

At least it's an indication that HM Govt finally realises it's maxed out all its credit cards.

[Puggit]

The BS will be saved one way or the other. The Scottish one eyed idiot's constituency includes parts of Dunfermline.

[andy-xr]

Darling said:

When you bear in mind the society has never made more than about £5m or £6m in the recent past, it couldn't even service that sort of loan - let alone repay it

Cant really argue with that one

[Jasandjules]

Puggit said:

The BS will be saved one way or the other. The Scottish one eyed idiot's constituency includes parts of Dunfermline.

That was my first thought........ Self preservation is key here.

[Fittster]

Taxpayers could be forced to take on tens of millions of pounds of bad debts from Scotland's biggest building society after Alistair Darling said that reckless lending had driven it to the brink of collapse.

Parliament could be told as early as today that some parts of Dunfermline Building Society have been sold and that the taxpayer will be assuming responsibility for some or all of its bad debts. This will be the first time that a building society has been split since the collapse of Bradford & Bingley last September.

Gordon Brown faces acute embarrassment at news of the collapse of a 140-year-old financial institution on the doorstep of his constituency - four days before he hosts a summit of world leaders on the economy.

http://business.timesonline.co.uk/tol/business/ind...

Edited by Fittster on Monday 30th March 10:30

[Fittster]

Hmmm, bail out fatigue?

Ladies and Gentlemen we are getting screwed to the cost of a billion pounds!!

“The Treasury will take £1bn of commercial property lending and acquired mortgage debt. Scotland's first minister welcomed the deal.”

http://news.bbc.co.uk/1/hi/scotland/7971244.stm

[Tony*T3]

I dont get this one - as I understand it the busoness was listed as 'not viable' by the authorities and only posted small profits during the 'good times' so why has it been bought and why wasn't it allowed to 'just die'?

Would it not have been cheaper to just pay out the depositers and let the 'bad debts' fail?

[Puggit]

Tony*T3 said:

I dont get this one - as I understand it the busoness was listed as 'not viable' by the authorities and only posted small profits during the 'good times' so why has it been bought and why wasn't it allowed to 'just die'?

Would it not have been cheaper to just pay out the depositers and let the 'bad debts' fail?

See my earlier post!

[fido]

Tony*T3 said:

Would it not have been cheaper to just pay out the depositers and let the 'bad debts' fail?

But that has effectively happened?! Though i suppose being a mutual, the shareholders and depositors were one and the same thing. As long as the directors who brought the company down are not given golden handshakes, it's probably the best result you could expect.

[Mclovin]

so still a bailout but this time with a hint of spin....i love while this crap was going on to hide the bailout they were focussing on maddona...poor women adopting and doing good for charity and the press goes wild on her [also a gorgeous milf]...in contrast racist scumbag jade goody is a almost a queen and her husband is probably out shagging good looking birds with all her money...

breaking news - new labour spin tactic to stay in doing the rounds, just heard it on lbc jame obrien said that this shower is no better than any other...i reckon this is how the press will help labour stay in power by saying that theres no one better so we may as well settle with them....

at least the conservatives will cut costs and raise the rates = less snouts at the trough...

[FoolOnTheHill]

This is just another step in Nationwide's quest to be the only building society left in britain.

And then become a bank.

[Fittster]

FoolOnTheHill said:

This is just another step in Nationwide's quest to be the only building society left in britain.

And then become a bank.

This would be Nationwide that has fought for years to resit carpet bagggers and the city who want it to convert to a bank? Appears their management was wiser than most.

[FoolOnTheHill]

Fittster said:

FoolOnTheHill said:

This is just another step in Nationwide's quest to be the only building society left in britain.

And then become a bank.

This would be Nationwide that has fought for years to resit carpet bagggers and the city who want it to convert to a bank? Appears their management was wiser than most.

Newish Chief Exec with history in banking. Nationwide are quietly outsourcing everything but their core business.

[Sheepy]

Did anyone else see the chief exec of DBS on Channel-4 newslast night? He basically called Darling a liar over the eye-browed one's earlier claims of £100M+ needed. In his opinion the business needs about £25M to keep it going. As for Darling's claims about "American Toxic Debt", he stated that his company had bought the UK mortgage books of a US buy-to-let company, and that they held no overseas debts. I think they have been stuffed more by the banks not lending to other banks and building socs (which the billions from Brown and Darling was meant to solve).

More spin and bull from the treasury?

[Iain H]

My mortgage is with Dunfermline, I wonder who I now owe the money to?? Maybe it will get lost in the sale and I won't have to pay anymore!!

If only!

[Fittster]

Arrgghhhh!!!!

Taxpayers now looking at a 1.6bn cost.

"The Government has been forced to pay out around £1.6 billion for a porfolio including toxic loans and questionable mortgages as part of the rescue of Dunfermline Building Society by Nationwide Building Society today"

http://business.timesonline.co.uk/tol/business/ind...

Why can't Scots run banks (This lot, RBS and HBOS)? I thought they were a nation who knew how to be careful with money.

[s3fella]

Puggit said:

The BS will be saved one way or the other. The Scottish one eyed idiot's constituency includes parts of Dunfermline.

Exactly. And of course the other crap Banks that we have needed to bail out have both had "Scotland" in their name......

He's a fxxking pxick this guy

[Pugsey]

Sheepy said:

Did anyone else see the chief exec of DBS on Channel-4 newslast night? He basically called Darling a liar over the eye-browed one's earlier claims of £100M+ needed. In his opinion the business needs about £25M to keep it going. As for Darling's claims about "American Toxic Debt", he stated that his company had bought the UK mortgage books of a US buy-to-let company, and that they held no overseas debts. I think they have been stuffed more by the banks not lending to other banks and building socs (which the billions from Brown and Darling was meant to solve).

More spin and bull from the treasury?

He's the Chief exec of a company that has, at very best, just about bumbled along even through the good years and is now going down the tubes. Not really in a position to moan when no-one will bail him out is he?

[Phugoid]

Fittster said:

Arrgghhhh!!!!

Taxpayers now looking at a 1.6bn cost.

"The Government has been forced to pay out around £1.6 billion for a porfolio including toxic loans and questionable mortgages as part of the rescue of Dunfermline Building Society by Nationwide Building Society today"

http://business.timesonline.co.uk/tol/business/ind...

Why can't Scots run banks (This lot, RBS and HBOS)? I thought they were a nation who knew how to be careful with money.

It's a global economic downturn affecting hundreds of institutions worldwide, I don't think being Scottish has anything to do with it.