Friday, April 17, 2009

Building Societies could be in trouble too

Regulator accused of complacency

Heard this piece on Today this morning. It seems that building societies could have some of the same problems as the banks.

Posted by letthemfall @ 12:08 PM (723 views)
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2 thoughts on “Building Societies could be in trouble too

  • I have seen the 2008 accounts of several smaller building societies and whilst they all report lower profits, their business models appear to be sound.

    I believe it’s the larger societies such as Nationwide and the ones that promote themselves regularly in the national media, eg the Coventry, Leeds, Newcastle, Norwich & Peterborough, Chelsea that may have been less than prudent and expanded into the same areas as HBOS and RBS.

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  • Leeds looks sound on The Money , one of two who were not downgraded by Fitch, and Moody’s (I think they affirmed Leeds). Coventry had its ratings upheld last year by Fitch but were downgraded by Moody’s. I have been thinking about Building Socs I guess they are all going to have problems with 40 – 60% falls in property prices which Moody’s said was the “assumption” now, and prices not going back up until they do in line with incomes. But as someone said yesterday, if Nationwide goes they will ALL go .

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