Jonnybegood Posted March 27, 2008 Share Posted March 27, 2008 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? Quote Link to comment Share on other sites More sharing options...
huw Posted March 27, 2008 Share Posted March 27, 2008 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? Quote Link to comment Share on other sites More sharing options...
chichi Posted March 27, 2008 Share Posted March 27, 2008 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? Quote Link to comment Share on other sites More sharing options...
Yoss Posted March 27, 2008 Share Posted March 27, 2008 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. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted March 27, 2008 Share Posted March 27, 2008 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...) Quote Link to comment Share on other sites More sharing options...
Yoss Posted March 27, 2008 Share Posted March 27, 2008 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. Quote Link to comment Share on other sites More sharing options...
Rover Posted March 28, 2008 Share Posted March 28, 2008 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. Quote Link to comment Share on other sites More sharing options...
MRMX9 Posted March 28, 2008 Share Posted March 28, 2008 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! Quote Link to comment Share on other sites More sharing options...
Dubai Posted March 28, 2008 Share Posted March 28, 2008 Banks And Building Societies, Which is best positioned to weather the storm None. Quote Link to comment Share on other sites More sharing options...
minnow Posted March 28, 2008 Share Posted March 28, 2008 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 Quote Link to comment Share on other sites More sharing options...
onrollover Posted March 28, 2008 Share Posted March 28, 2008 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 Quote Link to comment Share on other sites More sharing options...
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