FSA defends actions over Dunfermline Building Society debacle
While the FSA has again come in for significant criticism with regards to its handling of the Dunfermline Building Society break up and take over, the authority has defended its actions on all counts. In a surprise move it was revealed that the FSA has been monitoring the commercial loan book of the Dunfermline Building Society since 2005 when concerns were first raised.
Those who followed the situation will be well aware that the Dunfermline Building Society, Scotland's largest society, was effectively split up and sold on within a very short space of time after a number of problems were made public. The UK Treasury, conscious of criticism regarding the extended takeover of Northern Rock, acted very swiftly to take on significant liabilities and sell on the branch network to the Nationwide Building Society. However, there were claims that the government acted far too quickly and did not give enough time for a consultation period which could, according to the Scottish executive, have seen a funding package put in place and the business retain its independence.
In many ways the UK authorities were in a very difficult situation having received significant criticism for acting too slow with the Northern Rock and again in the firing line after reacting quickly to the ongoing Dunfermline problem. It is interesting to see that a downgrade of debt ratings across the building society sector was announced by Moody's earlier this week, which may reflect ongoing concerns about loan books within the sector.
Share this..
Related stories
Regional ISA trends highlighted by Halifax report
ISA savers in Epsom and Ewell have the biggest account balances in the country, new figures from Halifax have shown.According to the research, people in the two towns have around £9,340 in their accounts - well up on the national average of just under £7,000.When the Halifax figures were adjusted for average earnings in each area, Christchurch in Dorset was found to have the biggest savers.Peopl...
Read MoreLloyds Bank situation prompts fall in UK banking sector
As expected, the announcement that the government is set to increase its stake to around 70% in Lloyds Bank has caused serious issues in the banking sector. The whole sector has been in freefall for some days now as rumours of problems with Lloyds Bank's toxic asset insurance deal began to surface. While those issues now appear to have been rectified this has come at a significant price for Lloyds...
Read MoreWhen will credit card interest rates begin to fall?
Slowly but surely we have seen credit card interest rates continue to rise throughout 2009 despite the fact that UK base rates remain stuck at 0.5%. This comes at a time when more and more people are struggling to repay their debts, with credit card debt amongst the most expensive. In what many believe is a situation made worse by the credit card companies, increased credit card interest rates hav...
Read MoreLocal councils lose millions to Icelandic crash
It has been announced that hundreds of millions of pounds of local council funding was held in bank accounts connected to Iceland meaning that there is a chance that it will all be lost after the crash in the country's financial sector. The Icelandic authorities have made good savings for nationals but as yet there has been no word on the various overseas divisions connected to the country's bank...
Read MoreIs Japan Airlines just hours away from bankruptcy?
Shares in Japan Airlines have fallen further today as the reality of the company's financial situation continues to hit home with investors. Having fallen to a record low equivalent to 26p a share it is believed the company is just hours away from an official bankruptcy ruling which will transfer ownership of the company to a state owned turnaround venture. But is this the end of Japan Airlines?...
Read More