Wednesday, December 2, 2009
The latest on the proposed Yorkshire and Chelsea BS merger
Yorkshire reveals plan to access government coffers
Yorkshire Building Society plans to access liquidity facilities from the Bank of England and HM Treasury's credit guarantee scheme to ensure its capital and funding remains strong as it merges with Chelsea. The mutual said it will make use of the funds following due diligence on Chelsea Building Society and moves to improve the quality of Chelsea's capital base, which it agreed to merge with today (2 December).The takeover of Chelsea Building Society by Yorkshire underscores the difficulties faced by mutuals during the recession.
Posted by jack c @ 01:11 PM (855 views)
3 thoughts on “The latest on the proposed Yorkshire and Chelsea BS merger”
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alan says:
“The Chelsea results were compounded by post-tax losses of £29m it made during 2008 and a £41m impairment due to mortgage fraud it made during the six months to 30 June 2009”.
A buy to let fraud. Link:
http://news.bbc.co.uk/1/hi/business/8213504.stm
jack c says:
Over £200m is to be set aside to cover any future losses arising from Chelsea Building Society’s mortgage book once Chelsea and Yorkshire Building Society have merged. A regulatory announcement posted on the London Stock Exchange today reveals the details of the proposed merger between the two societies. Accounting rules mean that once the merger has completed the Yorkshire has to make provisions for future losses, called fair value adjustments, to reflect any future losses that emerge from Chelsea’s existing book.
Source:- http://www.mortgagestrategy.co.uk/lenders/news/£200m-set-aside-for-chelseas-future-losses/1003225.article
mken says:
alan @1 A “buy to let fraud”. Link: http://news.bbc.co.uk/1/hi/business/8213504.stm
interesting how the Chelsea blamed fraudsters and not themselves or their own “business model” which was of course above reproach
“Nobody has been prosecuted to date, but if evidence emerges, the building society will report this to the relevant authorities”