Move against building societies grows with news of payoffs
For many years the building society sector has been seen to be the consumer's friend and a lot less aggressive than the leading UK banks. However, after the events of the last 7 days, which saw the Nationwide Building Society step in to rescue the Derbyshire and Cheshire building societies from collapse, the mood is starting to changes.
Apart from the matter of many investors having all of their savings and investment pooled together between the three parties in question, and losing some vital protection from the regulator, it now appears that those at the head of the Derbyshire and Cheshire are in line for large payouts.
It has been suggested in the popular press that £1.6 million has been put aside to buyout the contracts of 6 of the top directors from the Derbyshire and Cheshire building societies. If this is confirmed it is sure to infuriate savers even more because many will see it as a reward for failure. But is that fair?
Life has been very tough for all financial institutions in the UK not to mention particularly difficult for the smaller ones. If the Nationwide had not stepped in with a rescue package there is every chance that we would be discussing two failures in the financial sector. It is tough, but it could have been a whole lot tougher!
Share this..
Related stories
Wonga will write off 330,000 loans after FCA investigation
02/10/2014 The UK’s biggest pay day lender, Wonga, have today announced they will write off 300,000 customer loans, totalling in £220 million, after the financial conduct authority (FCA) discovered the company was not doing enough to assess customers ability to meet their repayments. Approximately 330,000 customers who are in arrears of 30 days plus, as at 2 October 2014, will have their de...
Read MoreReport finds many cars not as fuel efficient as claimed
28/09/2015 Motorists are being tricked into buying cars that claim to be more fuel efficient than they really are, according to lobby group Transport & Environment. A new report claims that European car markets are not testing their products properly on fuel performance and C02 emissions. Research found a 40% gap in the amount of petrol and Co2 released in the lab tests than in real life. Th...
Read MoreUK consumers move online for groceries
Online grocer Ocado has this week announced a 30% increase in underlying sales for the four weeks prior to Boxing Day. This is a massive increase for a company which has literally broken the mould in the online grocery market and looks set to become more and more popular in 2010. Sales for Saturday, 26 December hit a record £40.8 million which is a massive 49% like-for-like increase on the same p...
Read MoreIs the UK pension system fatally flawed?
The UK pension sector has received a significant blow today with a suggestion by leading actuaries in the UK that their life expectancy figures could be fatally flawed. The current system is based upon a model created in 1999 which suggested that the rate of increased life expectancy at that time would not continue into the future. However, there is a suggestion that the trend of constantly increa...
Read MoreHSBC re-enters the mortgage market in style
After a period of reflection during which the vast majority of HSBC's mortgage rates were in line and not necessarily competitive, the company is now looking to the future. HSBC is now offering a 90% mortgage at a rate of just 4.99% which is a full 1% better than the next best offer good in the market place (from Yorkshire Bank). Is this the turning point that many have waited for?
...