| Title:
|
DUNFERMLINE BUILDING SOCIETY
FIFTH REPORT OF SESSION 2008-09 REPORT, TOGETHER WITH FORMAL MINUTES, ORAL AND WRITTEN EVIDENCE |
| By: |
Great Britain: Parliament: House of Commons: Scottish Affairs Committee |
| Format: |
Paperback |
| List price:
|
£14.50 |
|
We currently do not stock this item, please contact the publisher directly for
further information.
|
|
|
|
|
|
| ISBN 10: |
0215540565 |
| ISBN 13: |
9780215540560 |
| Publisher: |
TSO |
| Pub. date: |
30 July, 2009 |
| Series: |
House of Commons Papers Session 2008-09, 548 |
| Pages: |
53 |
| Synopsis: |
The core parts of the Dunfermline Building Society (DBS) were transferred to the Nationwide Building Society at the end of March 2009. This followed a sale process conducted by the Bank of England under the Special Resolution Regime provisions of the Banking Act 2009. The reason for the intervention given at the time was DBS would be unable to satisfy depositors' claims against it. More specifically, they explained that DBS was failing, or was likely to fail, to satisfy the threshold conditions for operating as a deposit taker under the Financial Services and Markets Act 2000. The committee has been concerned over the impact of the financial crisis on Scottish institutions and as a continuation of its scrutiny in this area, took evidence on the circumstances which had led to the failure of the Dunfermline Building Society and the implications of the failure for its customers and workforce alike. Among its conclusions the Committee found the Board failed to communicate that the moves to diversify into the commercial lending business brought higher risks as well as higher returns.The Committee also concludes that the Financial Services Authority failed to give adequate specific warnings to the Dunfermline Building Society to justify the assertion that it was repeatedly warned about the dangers of commercial lending and that it should have been given in terms that savers and investors can understand. The Financial Services Authority should further ensure that the institution communicates these warnings to its members. Based on the evidence from the Tripartite Authorities and Nationwide the Committee considered that it was not possible for Dunfermline Building Society to remain independent. The ultimate responsibility for the plight that Dunfermline found itself in lay with the Board of the Society. |
| Publication: |
UK |
| Imprint: |
Stationery Office Books |
| Returns: |
Non-returnable |