Monday, September 29, 2008

Robbing the Prudent to Compensate the Wreckless

Building societies angry at B&B liabilities

The use of the Financial Services Compensation Scheme by the government has provoked an angry reaction from the UK’s 59 prudent building societies, which will also have to contribute despite having no connection with B&B’s failure. “We are concerned at the use of the FSCS to help rebuild a nationalised bank’s balance sheet, as deposit taking institutions our members will be badly hit by this.”

Posted by enuii @ 10:53 PM (1307 views)
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6 thoughts on “Robbing the Prudent to Compensate the Wreckless

  • Why the concern from the BS’s, all the s**t will be passed on to the customer and taxpayer in the end whatever deals are struck.

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  • Of course unless B&B is allowed to go bankrupt FSCS fund should never be touched. Relatively prudent BSs have every case to bring a collective action against the government.

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  • “One big shareholder said bringing in the FSCS was a “cynical ploy” by the government to ensure taxpayers did not foot the bill for B&B.”

    YES. I think its getting through … maybe …

    Say, do you want to hire the CEO of Bradford and Bingley to come and work for you now? No?

    Oh, praise be. I think we have a believer!

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  • prudent building societies? isn’t that an oxymoron? anyone offering more than 80% ltv is not prudent…

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  • Let me understand this…
    Am I right in thinking that the only safe places for savings are now the Northern Rock and Brad+Bin, as they are the only two directly backed by taxpayer’s money.
    If this is the case doesn’t it mean that they have an unfair advantage over the others? So much forfree market

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