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Barnsley Building Society saved from collapse

As news that the Barnsley Building Society is to merge with the Yorkshire Building Society hit the news wires it seems as though we have our first victim of the Icelandic banking collapse. While the operations of the Barnsley Building Society were coping well with the economic downturn the problems started when the Society announced a loss of £10 million which had been held with Kaupthing Singer & Friedlander.

Unfortunately, even though the Barnsley Building Society was saved by the merger with a rival Society it seems as though not all parties who have lost money in Iceland will be so lucky. As the news flow with regards to compensation for the losses starts to dry up there is a suggestion that the situation is being swept under the carpet by the government.

However, as the Yorkshire Building Society will continue the fight for compensation, the original Barnsley Building Society members could be in line for some sort of one off payment if the funds are returned. Unfortunately, those members who may have had funds with both societies will need to look at their own protection as the merged entity will only be entitled to Financial Compensation Cover of £50,000 for funds held with the Barnsley Building Society and Yorkshire Building Society as oppose to two separate claims before the merger.

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