Sancho Panza Posted January 20, 2014 Share Posted January 20, 2014 (edited) http://www.telegraph...is-selling.html 'Nationwide has become the first building society to be drawn into the scandal over the mis-selling of interest rate hedging products to small businesses after a property developer launched a legal action against Britain’s largest mutual. Urban Lime, a London-based property developer and investor, is claiming Nationwide failed to disclose the possible extent of break costs on a £9.8m loan it took out with the lender in 2007 that ended up being worth more than half the cost again of its debt.' Edited January 20, 2014 by Sancho Panza Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted January 20, 2014 Share Posted January 20, 2014 there may be trouble ahead.... Quote Link to comment Share on other sites More sharing options...
koala_bear Posted January 20, 2014 Share Posted January 20, 2014 How much small commercial lending does / did Nationwide do, could this actually be fairly minor for them? Besides NW is a bit more profitable now with all the recent BTL and FLS type lending on so they should still remain profitable. This might also explain why they delayed the roll-out of more small business banking for a while i.e. make sure no screw ups before they rapidly expand that area? The main point for me is it shows yet again they aren't really that different to the high street banks. Quote Link to comment Share on other sites More sharing options...
olliegog Posted January 20, 2014 Share Posted January 20, 2014 BUT - no-one expected rates to fall so precipitously and stay there - is this the root of the problem. first time I have heard of a property speculator/developer being described as a 'victim'. a loan of £8m in 2007 - not an SME then. Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted January 20, 2014 Share Posted January 20, 2014 Looks like the RBS settlements are about to flow - that will give an indicator of how much loot their partners in crime will have to return. Quote Link to comment Share on other sites More sharing options...
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