This is outrageous! I am hopping mad and have to ask why the taxpayer should bail out a failed business that has no chance of paying back the debt. The bottom line is that the savers are protected and the borrowers are an asset that can be sold.
It’s disgraceful that the board of a small regional building society like the Dunfermline has no sense of history when making its strategic decisions. What on earth were their non-executives doing?
There is a place in today’s world for small and medium-sized building societies, but it seems they are doing their best as a group to destroy consumers’ and regulators’ confidence in them.
There is no need for these organisations to enter commercial lending, to buy dodgy debts from America or to compete with commercial banks for growth. Boards of small mutual building societies need to remember that their place is to serve their local community.
Their priorities should be their customers, their staff and their business – in that order.
Financial Services Authority, please confirm that you are not aware of any other building societies boards who have fallen asleep on their watch?