This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/scotland/7971244.stm
The article has changed 20 times. There is an RSS feed of changes available.
| Version 13 | Version 14 |
|---|---|
| Nationwide takes over Dunfermline | Nationwide takes over Dunfermline |
| (11 minutes later) | |
| The Nationwide is to buy the Dunfermline Building Society's branches, good loans and deposits, it has been confirmed. | The Nationwide is to buy the Dunfermline Building Society's branches, good loans and deposits, it has been confirmed. |
| The mutual was put up for sale after incurring losses of £26m. | The mutual was put up for sale after incurring losses of £26m. |
| The Nationwide said the 140-year-old brand would keep its name but that there may be redundancies from its back office and support operations. | The Nationwide said the 140-year-old brand would keep its name but that there may be redundancies from its back office and support operations. |
| The Treasury will take on about £1.5bn of commercial property lending and acquired mortgage debt under the deal. | The Treasury will take on about £1.5bn of commercial property lending and acquired mortgage debt under the deal. |
| The agreement with the Nationwide was struck less than 48 hours after the UK Government announced that the building society was to be put on the market. | The agreement with the Nationwide was struck less than 48 hours after the UK Government announced that the building society was to be put on the market. |
| The Bank of England used new powers under the Banking Act to rush through the deal and prevent the Dunfermline - Scotland's largest building society - from going bust. | The Bank of England used new powers under the Banking Act to rush through the deal and prevent the Dunfermline - Scotland's largest building society - from going bust. |
| The Nationwide has bought the Dunfermline's retail and wholesale deposits, branches, head office and most of its residential mortgage book. | The Nationwide has bought the Dunfermline's retail and wholesale deposits, branches, head office and most of its residential mortgage book. |
| The Treasury has placed the building society's £500m social housing portfolio into a bridge bank, owned by the Bank of England. | The Treasury has placed the building society's £500m social housing portfolio into a bridge bank, owned by the Bank of England. |
| The remainder of the business - risky assets worth more than £900m - has been hived off and placed in the Building Society Special Administration Process, where they will be managed by administrators KPMG. | The remainder of the business - risky assets worth more than £900m - has been hived off and placed in the Building Society Special Administration Process, where they will be managed by administrators KPMG. |
| This includes £648m of commercial property loans - £500m of which had been made in the past three years - and £274m of buy-to-let and self-cert mortgages from defunct American finance house Lehman Brothers and GMAC. | This includes £648m of commercial property loans - £500m of which had been made in the past three years - and £274m of buy-to-let and self-cert mortgages from defunct American finance house Lehman Brothers and GMAC. |
| The collapse in commercial property prices means that losses on these loans are likely to be significant. | The collapse in commercial property prices means that losses on these loans are likely to be significant. |
| The Treasury is due to reveal later how much was paid by Nationwide, and any taxpayer liability. | The Treasury is due to reveal later how much was paid by Nationwide, and any taxpayer liability. |
| The Bank of England said: "It is business as usual for all customers. Dunfermline's deposit business will continue to operate normally. | The Bank of England said: "It is business as usual for all customers. Dunfermline's deposit business will continue to operate normally. |
| "Savers can be assured that their money is safe. | "Savers can be assured that their money is safe. |
| "All of Dunfermline's staff have been transferred to Nationwide." | "All of Dunfermline's staff have been transferred to Nationwide." |
| The new owner said Dunfermline's branch network, which has 245 employees, would remain intact but that it was likely that some staff would "no longer be required". | The new owner said Dunfermline's branch network, which has 245 employees, would remain intact but that it was likely that some staff would "no longer be required". |
| Scottish Secretary Jim Murphy said he had been given a guarantee that there will be no compulsory redundancies at any branch over the next three years. | Scottish Secretary Jim Murphy said he had been given a guarantee that there will be no compulsory redundancies at any branch over the next three years. |
| The BBC's business editor Robert Peston said there was bound to be significant job losses among the 289 people employed in Dunfermline's head office. | The BBC's business editor Robert Peston said there was bound to be significant job losses among the 289 people employed in Dunfermline's head office. |
| 'Value for money' | 'Value for money' |
| The Nationwide deal comes after a weekend of claim and counter-claim about whether the building society had to be put on the market at all. | The Nationwide deal comes after a weekend of claim and counter-claim about whether the building society had to be put on the market at all. |
| Chancellor Alistair Darling had said the Dunfermline would have needed between £60m and £100m to keep it going because of its exposure to risky assets. | Chancellor Alistair Darling had said the Dunfermline would have needed between £60m and £100m to keep it going because of its exposure to risky assets. |
| But the Treasury said full nationalisation would not have provided "value for money". | But the Treasury said full nationalisation would not have provided "value for money". |
| Prime Minister Gordon Brown has defended the government's role, claiming that the Dunfermline's management had been the "author of its own mistakes". | Prime Minister Gordon Brown has defended the government's role, claiming that the Dunfermline's management had been the "author of its own mistakes". |
| However, the society's outgoing chairman, Jim Faulds, said government funding of £20m-£30m would have helped secure its future and dismissed claims the building society had debts linked to the toxic US sub-prime mortgage market. | However, the society's outgoing chairman, Jim Faulds, said government funding of £20m-£30m would have helped secure its future and dismissed claims the building society had debts linked to the toxic US sub-prime mortgage market. |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| Mr Faulds said he "warmly welcomed" Nationwide's involvement but was "deeply disappointed" that the government did not provide the support needed for the building society to continue as an independent operation. | Mr Faulds said he "warmly welcomed" Nationwide's involvement but was "deeply disappointed" that the government did not provide the support needed for the building society to continue as an independent operation. |
| "What we needed was not capital but access to the liquidity scheme and the Financial Services Authority raised the bar for access to the liquidity scheme," he said. | "What we needed was not capital but access to the liquidity scheme and the Financial Services Authority raised the bar for access to the liquidity scheme," he said. |
| "We were not asking for money to be given to us. We were asking for a loan, which would have been repaid with interest. | "We were not asking for money to be given to us. We were asking for a loan, which would have been repaid with interest. |
| "We could have serviced a loan of between £20-£30m. That's what we think we needed. It would have been secured against a good property book and a social housing book that's rock solid." | "We could have serviced a loan of between £20-£30m. That's what we think we needed. It would have been secured against a good property book and a social housing book that's rock solid." |
| The Scottish Government had offered money to help keep the Dunfermline going, but did not get Treasury approval for the move. | The Scottish Government had offered money to help keep the Dunfermline going, but did not get Treasury approval for the move. |
| Commercially beneficial | Commercially beneficial |
| First Minister Alex Salmond welcomed the Nationwide deal but said there were "perplexing" questions over how the society had been treated by the Treasury and the Financial Services Authority. | First Minister Alex Salmond welcomed the Nationwide deal but said there were "perplexing" questions over how the society had been treated by the Treasury and the Financial Services Authority. |
| Dunfermline Building Society customers give their reaction to the takeover | |
| Graham Beale, chief executive of Nationwide, said it was in a "unique position" to be able to provide support to Dunfermline. | Graham Beale, chief executive of Nationwide, said it was in a "unique position" to be able to provide support to Dunfermline. |
| "We regard it as both responsible and commercially beneficial to undertake this transaction," he said. | "We regard it as both responsible and commercially beneficial to undertake this transaction," he said. |
| Dunfermline's board - including chief executive Jim Willens, who is a former board director of Nationwide - will resign after the deal. | Dunfermline's board - including chief executive Jim Willens, who is a former board director of Nationwide - will resign after the deal. |
| The building society, which has 34 branches, was founded in the Fife town from which it takes its name in 1869. | The building society, which has 34 branches, was founded in the Fife town from which it takes its name in 1869. |
| A protest about the sale took place at the mutual's head office in Dunfermline on Monday morning. | A protest about the sale took place at the mutual's head office in Dunfermline on Monday morning. |
| Are you a Dunfermline customer? Send us your comments and experiences using the form below: | Are you a Dunfermline customer? Send us your comments and experiences using the form below: |
| In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |