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| Rescue plan for West Bromwich BS | Rescue plan for West Bromwich BS |
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| The West Bromwich Building Society is to be rescued within the next few days, the BBC's business editor Robert Peston has learnt. | The West Bromwich Building Society is to be rescued within the next few days, the BBC's business editor Robert Peston has learnt. |
| Savers at West Brom will not lose a penny and it should be business as usual for the society's mortgage borrowers, our correspondent says. | Savers at West Brom will not lose a penny and it should be business as usual for the society's mortgage borrowers, our correspondent says. |
| There have been rumours for weeks about the West Bromwich Building Society being in trouble. | There have been rumours for weeks about the West Bromwich Building Society being in trouble. |
| The society operates 46 branches and has about 350,000 customers. | The society operates 46 branches and has about 350,000 customers. |
| Nobody from the society was immediately available for comment. | Nobody from the society was immediately available for comment. |
| Last month, the West Bromwich denied reports that it was on the verge of collapse. | Last month, the West Bromwich denied reports that it was on the verge of collapse. |
| Two options | |
| Our correspondent said the society had "pushed the boat out a bit too much" on commercial property and buy-to-let lending. | Our correspondent said the society had "pushed the boat out a bit too much" on commercial property and buy-to-let lending. |
| KEY FACTS Employs 850 staff and has 350,000 customersIt has 46 branches, primarily in the MidlandsIt is the eighth-largest building society in the UKHas been a mutual building society for 160 years | KEY FACTS Employs 850 staff and has 350,000 customersIt has 46 branches, primarily in the MidlandsIt is the eighth-largest building society in the UKHas been a mutual building society for 160 years |
| There are two options available to the UK's eighth-largest building society. | There are two options available to the UK's eighth-largest building society. |
| It may be broken up, with its savers transferred to another building society and its assets taken over by the Bank of England under the so-called Special Resolution Regime. | It may be broken up, with its savers transferred to another building society and its assets taken over by the Bank of England under the so-called Special Resolution Regime. |
| This is what happened to the Dunfermline Building Society. It was taken over by the Nationwide in March after incurring losses of £26m. | This is what happened to the Dunfermline Building Society. It was taken over by the Nationwide in March after incurring losses of £26m. |
| Or the Financial Services Authority and the Treasury may convert some of the debt provided by investors and financial institutions to West Brom into a new form of capital. | Or the Financial Services Authority and the Treasury may convert some of the debt provided by investors and financial institutions to West Brom into a new form of capital. |
| This could allow West Brom to keep its independence or to merge with another society. | This could allow West Brom to keep its independence or to merge with another society. |
| It is touch and go which option will be settled upon, according to our correspondent. | |
| West Brom is also more dependent than some societies on wholesale funding, which has become harder to obtain Robert Peston BBC's business editor Read Robert's thoughts in full | |
| Rating cut | |
| Last month the West Bromwich, along with four other societies, was downgraded by the credit ratings agency Fitch. | |
| The agency said that the weakening economic environment had increased the credit risk of the societies. | |
| The long-term outlook for the West Bromwich was downgraded from an A- to a BBB+. | |
| But a spokesman for the society said it remained "a safe and secure home for members' savings". | |
| Shrinking sector | |
| The potential rescue comes after a series of mergers in the building society sector. | |
| In September the UK's biggest building society, the Nationwide, agreed to stage a rescue takeover of two small societies, the Cheshire and the Derbyshire. | |
| Skipton Building Society agreed in November to merge with the smaller Scarborough Building Society. | |
| The following month, the Barnsley Building Society was rescued by the larger Yorkshire Building Society, the same day as the merger between the Chelsea and Catholic societies was completed. | |
| Are you a West Bromwich Building Society employee or customer? Send us your comments using the form below. | Are you a West Bromwich Building Society employee or customer? Send us your comments using the form 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 |