Help Sitemap Home Skip Navigation Contact Us Disability Statement


Scots MPs to probe demise of Dunfermline Building Society

Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image

Published Date: 09 May 2009
AN INFLUENTIAL committee of Scottish MPs is to hold an inquiry into why the Dunfermline Building Society had to be rescued earlier this year, it was announced yesterday.
The Scottish Affairs Committee will mount an investigation into the circumstances that led to the Nationwide buying parts of the society.

It will also look at the effect this has had on banking services.

The committee will take evidence from the Treasury, the Financial Services Authority and the Bank of England.

MPs will also hear from officials from the Dunfermline and Nationwide building societies. Dunfermline ran into trouble in March this year when it emerged that the society was having to write off millions of pounds due to the collapsing commercial property market.

It then announced losses of £26 million.

As a result of negotiations with the Treasury, core parts of the Dunfermline were transferred to the Nationwide Building Society.

The Treasury said it would take on about £1.5 billion of commercial property lending and acquired mortgage debt under the deal, freeing up the profit-making parts of the society to be sold to Nationwide





Page 1 of 1

 
1

The Online Scot,

Scotland 08/05/2009 22:50:57
Allow me yo suggest a few questions:

Why did Jim Murphy issue false statements about the reasons for the Dunfermlines predicament? Murphy falsely stated, on more than one occassion, that the building society had acquired American sub prime mortgages.

Why did Alistair Darling say a figure of between £60 - 100 million was needed in order to allow the society to keep trading? The FSA stated that the society needed maximum £30 - 40 million.

Why has the KPMG report into the Society not been publicised?
2

,

09/05/2009 01:16:38
Comment Removed By Administrator
Reason:
3

BIG EYE,

Paisley 09/05/2009 02:01:55
I just hope that the Westminster MP's involved can tear themselves away from the large TV screens and other comforts of their host of homes that I helped pay for to get down to some serious business.

I await their cover up with bated breath!
4

famous 15,

Edinburgh 09/05/2009 02:30:00
Dunfermline? Oh . Yes. Gordon's fiefdom. Shafted. Why? (there is a story there if we had a better quality of journalism in Scotland!)
5

Robert Mason,

Larkhall 09/05/2009 08:14:28
What they will find is an extensive catalogue of mismanagement ie the same as RBS and HBOS.
6

Don Roberto,

09/05/2009 11:03:19
An answer as to why the Scottish Housing Associations, with a book worth at least £100 million, were denied talks with the FSA and the Treasury, when they suggested they could bail out the Dunfermline, may be worth pursuing.
7

hoblar,

09/05/2009 12:45:25
"What they will find is an extensive catalogue of mismanagement ie the same as RBS and HBOS."

No they won't, or if they do then the investigation will be making things up, hardly a surprise when NO Labour MP's stood up for Dunfermline (Jim Murphy and Alisitair Darling, 'Scottish' MP's, stated FALSELY that Dunfermline had sub prime debt-completely untrue).

Also, in a place called 'England', there has been an enormous collapse in the banking system, not just in Scotland, a land that was completely unaware that we were rolling in it because we own RBS and HBoS.......I mean to say, it is OUR fault that these banks collapsed according to some dimwits, and yet during Gordon brown's 'boom' years these banks were making BILLION in profits, but that profit, of course, was NOT Scottish.

These new labour MP's better be quick to investigate, because come any election there will be fewer of them in Scotland, and that will be a brilliant time for Scotland to progress.
8

Desmo,

Lumphinnans 09/05/2009 13:49:12
#7 Hoblar

You just beat me to it, my friend.

I too was intrigued by poster #5. Such self-assurance is puzzling when no evidence is provided to back it up.

Then again, none of that mattered to Murphy or Darling at a time when their comments had a direct and negative impact on the Dunfermline`s reputation.

While I welcome any investigation into what many regard as a blatant stitch-up, I hope no-one`s holding their breath waiting on a truthful, honest analysis.

 

Comment on this Story

 

In order to post comments you must Register or Sign In

 
 
RSS Feed of this article's comments
Delivery formats: RSS, Atom, Javascript & Email
 
 

More Scotland's banking crisis

More Scotland's banking crisis >>

More Dunfermline Building Society

More Dunfermline Building Society >>


Sister Newspapers:
Press Complaints Commission

This website and its associated newspaper adheres to the Press Complaints Commission’s Code of Practice. If you have a complaint about editorial content which relates to inaccuracy or intrusion, then contact the Editor by clicking here.

If you remain dissatisfied with the response provided then you can contact the PCC by clicking here.