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| Nationwide takes over Dunfermline | Nationwide takes over Dunfermline |
| (10 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 remain intact but that there may be redundancies from its back office and support operations. | The Nationwide said the 140-year-old brand would remain intact but that there may be redundancies from its back office and support operations. |
| The Treasury will take £1bn of commercial property lending and acquired mortgage debt. | The Treasury will take £1bn of commercial property lending and acquired mortgage debt. |
| 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 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 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. |
| 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". |
| However, the Dunfermline's outgoing chairman, Jim Faulds, had claimed 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 Dunfermline's outgoing chairman, Jim Faulds, had claimed 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. |
| 'Rock solid' | 'Rock solid' |
| 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. |
| He said the Nationwide was "a first-class operation" by which existing Dunfermline members would be "well served". | He said the Nationwide was "a first-class operation" by which existing Dunfermline members would be "well served". |
| But he added: "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. | But he added: "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. |
| "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. |
| I think it's good news that the jobs have been secured within the Dunfermline Building Society as part of the deal Willie Rennie MP | I think it's good news that the jobs have been secured within the Dunfermline Building Society as part of the deal Willie Rennie MP |
| "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. |
| First Minister Alex Salmond said there were "perplexing" questions over how the society had been treated by the Treasury and the Financial Services Authority. | First Minister Alex Salmond said there were "perplexing" questions over how the society had been treated by the Treasury and the Financial Services Authority. |
| He said the Dunfermline was not the only building society to declare losses, yet others were continuing to trade. | He said the Dunfermline was not the only building society to declare losses, yet others were continuing to trade. |
| "The question remains, would it have been better to provide the capital - that we were willing to contribute to - to allow this organisation to retain its proud history?" he said. | "The question remains, would it have been better to provide the capital - that we were willing to contribute to - to allow this organisation to retain its proud history?" he said. |
| But Labour MP John McFall, chairman of the House of Commons Treasury Select Committee, argued that the Dunfermline's bosses were the architects of their own misfortune. | But Labour MP John McFall, chairman of the House of Commons Treasury Select Committee, argued that the Dunfermline's bosses were the architects of their own misfortune. |
| "If Alex Salmond is defending the Dunfermline building society and the directors, he is really defending the indefensible," he said. | "If Alex Salmond is defending the Dunfermline building society and the directors, he is really defending the indefensible," he said. |
| Mr Salmond said the Dunfermline was not the only society to declare losses | Mr Salmond said the Dunfermline was not the only society to declare losses |
| "The directors engaged in reckless decisions that, at the end of the day, threatened the society." | "The directors engaged in reckless decisions that, at the end of the day, threatened the society." |
| Mr McFall also dismissed the Scottish Government's previous offer of help. | Mr McFall also dismissed the Scottish Government's previous offer of help. |
| He said: "The Scottish Government, from what I can gather, was talking about £25m. | He said: "The Scottish Government, from what I can gather, was talking about £25m. |
| "The taxpayer is standing behind it to the tune of £1bn. | "The taxpayer is standing behind it to the tune of £1bn. |
| "The Scottish Government is incapable of putting money like that behind it." | "The Scottish Government is incapable of putting money like that behind it." |
| Graham Beale, chief executive of Nationwide, said: "Nationwide is in a unique position, by virtue of its size and financial strength, to provide support to Dunfermline, and we regard it as both responsible and commercially beneficial to undertake this transaction." | Graham Beale, chief executive of Nationwide, said: "Nationwide is in a unique position, by virtue of its size and financial strength, to provide support to Dunfermline, and we regard it as both responsible and commercially beneficial to undertake this transaction." |
| 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. |
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