West Bromwich building society admits changes are imminent
Even though the rumour mill has been going at full speed over the last few weeks, up until today the West Bromwich building society had refused to confirm reports that business was in trouble. However, the Sunday Times has revealed that rescue talks began some days ago and the society itself has already began "hawking" the business to competitors with a potential merger or takeover one option being considered.
This is a significant change of tack compared to just last week when any suggestions that the business, which has a £10 billion loan book, was struggling were dismissed out of hand. While it has yet to be confirmed by the regulator, the Financial Services Authority is rumoured to be at the centre of rescue and potential takeover plans with a number of "white knights" looking to rush to the society's rescue.
Aside from the fact the West Bromwich building society has over 500,000 members and 850 staff, more financially stable societies are concerned about any potential knock-on effect if the business was to go under. It seems that the industry as a whole is coming together to offer finance and assistance to those in trouble as a means of protecting the overall industry which has a lot to lose.
Share this..
Related stories
Could Lloyds Bank be broken up?
There is speculation in the marketplace that management at Lloyds Bank may well be considering a breakup of the group with the company's Scottish Widows subsidiary said to be top of the list. If valued on a similar rating to its peers Scottish Widows accounts for around 20% of Lloyds Bank's total market capitalisation yet only accounts for 8% of the group's earnings. There are also additional fund...
Read MoreCredit card companies putting customers under pressure?
More and more credit card customers in the UK are now complaining of being "harassed" by their credit card company even though many people are up-to-date with their payments. It would appear that more and more credit card companies are becoming proactive where they feel their customers are entering financial difficulties, even if they are up-to-date with their payment schedules. So what can you do...
Read MoreIs Ofgem strong enough to take on the UK energy companies?
Today's news that Ofgem believes UK energy companies are overcharging customers has received a lukewarm response in many quarters. Consumers and businesses have for many years believed that they were being overcharged by the energy companies who for example moved their prices higher as the price of oil rose yet refuse to reduce them when the price of oil declined. So is Ofgem strong enough to take...
Read MoreWill student fees be an easy target for political parties?
As we covered in one of our posts early today there appears to be a consensus growing with regards to student fees and budget cuts in the UK. While many parties have come forward to suggest that student fees should be increased and the income level at which students have to pay for their education should be lowered there has been silence from the political arena.
There is strong spe...
Ethel Austin slips into administration
Discount clothes retailer Ethel Austin has today been placed into administration with 3,700 jobs at risk as the company struggles to survive. Administrators took control of the company early today with the snowy weather over the festive period one of a number of factors which appeared to have pushed the company over the edge. While it is hoped that buyers will step forward to acquire the business...
Read More