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Manchester Building Society | Uncertainty Regarding The Long-Term Future Of The Society

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Manchester Building Society is fighting for survival after urging customers to keep savings below the £75,000 limit covered by a national compensation scheme.



In an ominous statement, the chairman David Harding said there was “uncertainty regarding the long-term future of the society”, but insisted the board was doing all it could to save the institution.



Harding said: “We continue to put the best interests of our members first."




From the Guardian:


http://www.theguardian.com/money/2016/apr/15/manchester-building-society-warns-customers-limit-savings



Warning here from Oliver Butt back in 2014:


http://www.fixedincomeinvestor.co.uk/x/analysis.html?type=bond-of-the-week&cat=analysis-comment&y=2014&aid=1269



Current Discussion:


http://www.fixedincomeinvestor.co.uk/x/forum.html#/discussion/356/manchester-building-society-battling-to-survive


Edited by M21er

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The building society swung to a £4.9m loss in 2015, following a £4.5m profit in 2014. It is in the process of winding down its mortgage book, offering no new loans. Its loan book fell to £331m last year from £387m a year earlier.

A spokesman for Manchester Building Society said it still had about 4,000 mortgage borrowers, as well as about 18,000 savings accounts.

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Not enough borrowers. Low interest rates do not work.

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The non-execs who use their "vast skills and experience" have been doing very well on 10-20 days a year with salaries that most people earn in a year. Obviously no prosecution for failure...they could never have seen it coming...

It does beg the question, when the members of the Establishment are given these jobs and their not capable...should the Establishment not care? With each f*ck up they are getting closer to allowing the people to look behind the curtain and realise that the system of money and debt is all about control - it doesn't actually exist!

Fees 2015 '000 JP Allen 29 HF Baines 36 IA Dewar 29 DA Harding 72 FB Smith 29 J Smith 9

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It does beg the question, when the members of the Establishment are given these jobs and their not capable...should the Establishment not care? With each f*ck up they are getting closer to allowing the people to look behind the curtain and realise that the system of money and debt is all about control

I'd guess there are probably a lot of Tony Blair types in these jobs for whom every success is down to their amazing talents, every failure is due to dark forces outside of their control, and who think they are clever enough to fool all the people all the time.

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Bank goes bust is not really an exciting story these days.

However, a BS talking about being in trouble openly is.

In the past, the BoE would have already leant on a solvent BS to take it over.

http://www.thescarboroughnews.co.uk/search?query=scarborough+building+society&p=header

Whats interesting here is that no other BS is interested, or finds it too risky.

Manc BS seems to have drifted far from its original purpose of mortgages. Equity release to OAPs in Spain was never a good idea.

Im relieved that the UKs biggest, Nationwide, has stuck to its knitting and not gone balls deep in some poorly thought out, higher yielding product like BTL ....

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Manchester Building Society is fighting for survival after urging customers to keep savings below the £75,000 limit covered by a national compensation scheme.

In an ominous statement, the chairman David Harding said there was “uncertainty regarding the long-term future of the society”, but insisted the board was doing all it could to save the institution.

Harding said: “We continue to put the best interests of our members first."

From the Guardian:

http://www.theguardian.com/money/2016/apr/15/manchester-building-society-warns-customers-limit-savings

Warning here from Oliver Butt back in 2014:

http://www.fixedincomeinvestor.co.uk/x/analysis.html?type=bond-of-the-week&cat=analysis-comment&y=2014&aid=1269

Current Discussion:

http://www.fixedincomeinvestor.co.uk/x/forum.html#/discussion/356/manchester-building-society-battling-to-survive

Great to see you back posting M21er.

I think there's trouble brewing at a few more.

Any chance of reviving then old auction threads?

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Maybe i'm being sentimental, but it seems to me a beautiful and pure thing, that a business, in this day and age, is being honest. Capping what it takes in, ending new business, running things down in an orderly fashion, and accepting a future market has no place for it.

One might say its honest, old fashioned textbook capitalism.

Compare to the big banks who would likely just ponzi to infinity, build growth on short term volumes rather than long term quality and let the taxpayer pick up the tab when it all goes wrong.

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Maybe i'm being sentimental, but it seems to me a beautiful and pure thing, that a business, in this day and age, is being honest. Capping what it takes in, ending new business, running things down in an orderly fashion, and accepting a future market has no place for it.

One might say its honest, old fashioned textbook capitalism.

Compare to the big banks who would likely just ponzi to infinity, build growth on short term volumes rather than long term quality and let the taxpayer pick up the tab when it all goes wrong.

I agree. I have a lot of respect for start-up founders who realise it isn't going to work, and wind it down rather than simply crashing and burning.

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I agree. I have a lot of respect for start-up founders who realise it isn't going to work, and wind it down rather than simply crashing and burning.

It shows integrity, an asset sadly lacking in today's society.

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What happens to the mortgage customers if it goes under and they don't switch? Is the house repossessed?

Nah, someone else will buy the debt, but the borrowers may face a rate hike at the end of their fix.

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Maybe i'm being sentimental, but it seems to me a beautiful and pure thing, that a business, in this day and age, is being honest. Capping what it takes in, ending new business, running things down in an orderly fashion, and accepting a future market has no place for it.

One might say its honest, old fashioned textbook capitalism.

Compare to the big banks who would likely just ponzi to infinity, build growth on short term volumes rather than long term quality and let the taxpayer pick up the tab when it all goes wrong.

Yup honesty and banking there might be hope yet

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