At least the Nationwide is a mutual with a decent reputation but I am bitterly disappointed that the Government did not do more to keep the Dunfermline Building Society an independent Scottish mutual especially as the Government is partly responsible for its difficulties.
One hundred and thirty years of trusted mutual tradition in Scotland doesn't seem to be valued enough by the Treasury.
My concern now turns to jobs, branches and the HQ.
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Why should my money be used to pay for something just out of tradition? We need evidence based policy making.
ReplyDeleteSavers and borrowers have all got a fine deal out of this, and there are to be no branch job cuts. Taxpayers save compared to a bailout. No branch cuts for 3 years.
For once the government has done the right thing. This is not a special case- the same thing was done at Bradford and Bingley. All this special pleading that we can't do it to a small Scottish mutual because isn't it just lovely is ridiculous.
This wasn't special pleading. The Government has made signficant errors on regulation, FSCS levy and capital requirements regarding the Dunfermline.
ReplyDeleteI wanted them to recognise that and help keep an institution that has served the community well for 140 years alive.
Well, I have to say that the fact the government didnt help doesnt surprise me!! If the Dunfermline were the size of RBS or Lloyds TSB then of course that would be a different story. Remember, the government sold us down the river with HBOS too. Anything Scottish, that could remain Scottish, appears to be fireballed at the first opportunity. There have been some very bad errors of judgement on the part of all the banks in the last few years and they have been left to get on with it without little intervention from the FSA. Indeed, anybody that wanted to "blow the whistle" was gagged. I banked with Bank of Scotland for over 30 years. I began to see a deterioration in its service when Halifax took it over and it just went from bad to worse. Luckily I left before things really got bad but all the banks are the same. Its a shame that this has happened to the Dunfermline but bad management cannot be rewarded - like Fred Goodwin!!!! - and these people must face the consequences of their recklessness and answer the "difficult" questions that need to be asked.
ReplyDeleteGordon Brown in his speech to the House said that people should remember that the management of Dunfermline had got themselves into this position and could not expector complain if not bailed out
ReplyDeleteI assume he will apply that logic to the RBS , HBOS etc and indeed the UK economy ? If so then he should be apologising for and accepting accountability for his mistakes