Dunfermline Building Society collapse could cost taxpayers up to £800 million
As the UK government looks to announce a possible buyer for the "healthy parts" of the Dunfermline Building Society it has been revealed that UK taxpayers will be left to take on an £800 million mix of risky commercial property and mortgage securities. While the UK government has been quick to confirm it is unwilling to take on the business as a whole, preferring to sell off the more viable sections of the business, why are UK taxpayers be left with a potentially hefty bill?
To all intents and purposes, this is a bailout of the building society on a substantial scale with concerns that a period of alleged "reckless lending" has pushed the society to the edge. The government is apparently in talks with two other societies about taking on parts of business with the intention of announcing the sale before opening time today.
There is still some dispute about the way in which the Treasury has acted with concerns that "faceless mandarins" had apparently refused to talk to directors at the building society about a possible independent future. The Dunfermline Building Society is Scotland's largest building society and the collapse of the business does not strengthen SNP calls for an independent future.
Share this..
Related stories
Massive discounts on the high street are not working
Recent evidence would suggest that the large number of substantial discounts on the high street and online are not working with consumers willing to risk further delays in spending in the hope that prices will be reduced yet further. While this is a very risky game by the UK consumer it would appear to be working with the frequency and levels of discount sales starting to increase as we approach t...
Read MoreInsolvencies set to rocket as recession bites
Later today we will see evidence of the extent to which the ongoing economic downturn has impacted upon consumers around the UK with expectations that the recession will see record numbers of Individual Voluntary Arrangements (IVAs). Many insolvency experts have been predicting record debt counselling numbers and IVAs for some time and today they expect to see around 30,000 new arrangements from A...
Read MoreEnergy firms set to double profit margins
31/07/2014 Energy providers look set to double their profit margins over the next 12 months, according to Ofgem. The regulator said that the ‘big six’ energy providers currently make a pre-tax profit margin of 4% on each ‘dual-fuel’ customer, which is equal to £53 a year. However, over the next 12 months, this is set to double to around 8%, or £106 per year. These claims have be...
Read MoreOFT considering investigating investment banking fees
In the latest in a series of attacks on the City of London financial markets, the Office of Fair Trading (OFT) has confirmed that it is considering launching a formal enquiry into investment banking fees. Further pressure has been placed on his potential enquiry by the City Minister Lord Myners who has publicly spoken about his concerns regarding fees in the investment markets and potentially rest...
Read MoreGraduate job market recovers to pre-recession levels
07/07/2014 The number of graduate job opportunities has increased by 12% over the last 12 months, according to a report. The figures are particularly significant, as it means the graduate job market has recovered to the same level as before the recession in 2007, when employment opportunities fell by 23.3% up to 2009. The report said that the UK’s top companies employed more graduates t...
Read More