Wednesday, March 31, 2010

Time to remove cash?

£2.5m write-off hits Manchester Building Society

Manchester Building Society’s profits fell to levels not seen since 1996 after it was forced to write off a £2.5m investment in a mortgage company.

Posted by mark @ 01:37 PM (361 views)
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3 thoughts on “Time to remove cash?

  • “The problem faced by our sector is that the building society model of providing 25-year mortgages, many of which are on rates linked to bank base rate and funded by short term deposits, does not work well at such low interest rate levels.”
    Not everyone benefits from low IRs, just the people targeted by the present government.

    BTW haven’t the big banks been making dividend payouts to shareholders, as well as bonuses to its staff, while sitting on massive losses from commercial properties etc that are somehow ringfenced?

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  • Happyrenting says:

    I had an account with MBS. They kept me well informed of the falling IR and I decided to take the cash out. Shame because they had some excellent products 3 years ago.

    Proof if ever we needed it of the bad management of the UK economy. Punish the prudent savers to prop up the reckless borrowers. Surely justice is around the corner…?

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  • The Manchester would have got more of my money if they’d offered sensible rates but as it is I am about to transfer an ISA from them to another provider.

    I know it won’t make one iota of difference but it’s the principle of cutting rates when bank rate has remained the same for a year that really p*sses me off and I see Michael Prior is still smiling and looks happy enough so I suppose his salary isn’t affected.

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