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.

[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

[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.

[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.

[Fittster]

limpsfield said:

Phugoid said:

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.

Dunfermline BS
Royal bank of Scotland
Halifax Bank of Scotland
Bradford & Bingley

There's a trend here. The north of Watford one. They should all go back to bartering

Northern Rock - Based in the North East.

Banks trading without taxpayers support:

HSBC - Based in London and includes the old Midlands Bank.
Barclays - Based in London.
Nationwide - Swindon.

Give a northern an amount of money larger the a giro and it all goes horribly wrong. The're just not used to large sums (more than £100.00).