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Jonnybegood

Banks And Building Societies

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Just had an invite to vote in and attend the Yorkshire BS AGM.

Reading through their annual reports they mention how they are well positioned in the current credit crisis, going on to say they have had very little exposure to sub prime lending and have offered no BTL products.

Also states that the majority of their lending has been from savings unlike other banks (Northern rock mentioned) where money was bought on the open market.

As a society with no shareholders they had no reason to take big gambles just to please the stock market.

Are the majority of BS that are left better positioned that the banks, the only bank I think is sitting pretty at the moment is Lloyds TSB due to their careful lending even over the last few years.

My nephew took out a mortgage with Lloyds TSB (C&G) 2 years ago and was offered a maximum £100k even though he and his girlfriend both earned over £20k each and both have an almost perfect credit rating.

Any thoughts?

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Are the majority of BS that are left better positioned that the banks, the only bank I think is sitting pretty at the moment is Lloyds TSB due to their careful lending even over the last few years.

Good question. I'd like to know the fundamental difference between banks and building societies (beyond the obvious one, i.e. that banks are owned by shareholders while BSs are owned by their members). Building societies are perceived to have taken less risks than banks, witness the surge of new accounts that Nationwide reportedly enjoyed during the run on Northern Rock ... is this because BSs are subject to stricter regulation that doesn't allow them to take these risks, or because they're not pressured by dividend-demanding shareholders? Or is there no real difference in reality?

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Really? They recently opened a branch in Oldham

UK-based Yorkshire Building Society has opened a new branch in Oldham, located in Greater Manchester, England.

We already have more than 5,000 members living in the Oldham area so the town was an ideal choice for branch expansion. This is the third new branch we have opened this year and we've also expanded our high street presence with four new agencies

So 5000 members is enough to warrant the expense of a large high street branch?

I spose if they get another 5000 sign up maybe.

They any good? They one on their own completely?

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I think Lloyds are a safe bet, got well and truely fubar'd by re-insurance/complicated instruments some time back if I remember. Dragged many a rich noble with em.

So probably have RISK assesment model that factors in the 'Oh Feck' moments.

Who did the BOE turn to when NR started to go belly up? Lloyds took one look and thought.. yeah right not on your nelly sunshine, we've seen figures like that before!

Once bitten twice shy.

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I think Lloyds are a safe bet, got well and truely fubar'd by re-insurance/complicated instruments some time back if I remember. Dragged many a rich noble with em.

So probably have RISK assesment model that factors in the 'Oh Feck' moments.

Who did the BOE turn to when NR started to go belly up? Lloyds took one look and thought.. yeah right not on your nelly sunshine, we've seen figures like that before!

Once bitten twice shy.

Lloyds of London NO relation to Lloyds TSB! (Although that Lloyd got around a bit! Lloyd Triestino, Hapag-Lloyd...)

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Distant relations but having seen my cousin mowed down by a combine havester (Meta obviously) , I might think twice about letting my children play in the hay field when the sun is out.

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Yorkshire BS; Got an interner saver account with them and visit the local branch now and again.

They are conservative and old school, therefore I believe them to be 'safe' and unexciting.

Moved all my money out of the internet saver some time ago as their rates reflect the above.

Safest bank is probably HSBC, too big and diverse too be seriously troubled by the Western credit crunch.

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Yorkshire BS; Got an interner saver account with them and visit the local branch now and again.

They are conservative and old school, therefore I believe them to be 'safe' and unexciting.

Moved all my money out of the internet saver some time ago as their rates reflect the above.

Safest bank is probably HSBC, too big and diverse too be seriously troubled by the Western credit crunch.

Exactly - you are generally far safer with a BS than a bank because most of their lending is funded via savers deposits. If any small society went belly up anyway the Building Societies Association would get Yorkshire, the Skipton, Chelsea, Britannia or Nationwide to buy it up for a song. Plus most societies have been around since the Crimean war - they have survived worse!

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I have some savings with the Co-op bank (don't laugh). They are in euros, in a simple euro savings account i.e. not offshore or anything more sophisticated.

Is the Co-op in good shape regarding BTL, sub-prime exposure etc?

Minnow

Yes, I am a small fish - we look for shelter in the tiny spaces

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Lloyds TSB has poor rates though, best you can get is 5% if you put in a lot for a fixed term.

Yorkshire BS sounds ok.

I am trying to interprit what the various credit rating agencies say about banks eg. Fitch

http://www.fitchratings.com/

the co-op looks bad compared to lloyds

Co-Op

Long Term Issuer Default Rating: A 11-JAN-2008 Revision Outlook Outlook: Negative

Short Term Issuer Default Rating: F1 11-JAN-2008 Affirmed

Support Rating Floor: BB+ 11-JAN-2008 Affirmed

Lloyds:

Long Term Issuer Default Rating: AA+ 15-JAN-2007 Affirmed Outlook: Stable

Short Term Issuer Default Rating: F1+ 12-JUN-2007 Revision IDR

Support Rating Floor: A- 16-MAR-2007 New Rating

HSBC:

Long Term Issuer Default Rating: AA 21-DEC-2007 Affirmed Outlook: Stable

Short Term Issuer Default Rating: F1+ 21-DEC-2007 Affirmed

Support Rating Floor: A- 21-DEC-2007 Affirmed

Yorkshire BS:

Long Term Issuer Default Rating: A+ 04-MAR-2008 Affirmed Outlook: Stable

Short Term Issuer Default Rating: F1 04-MAR-2008 Affirmed

Support Rating Floor: BB+ 04-MAR-2008 Affirmed

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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