"DUNFERMLINE BUILDING SOCIETY IS SECURE BUT MUST REMAIN INDEPENDENT"
By Jim on Sunday, March 22 2009, 16:23 - West Fife & Coastal Villages - Permalink
"There is no question that the deposits of savers in Dunfermline Building Society are secure but it is essential that the Society stays independent for the sake of local jobs and the future of the Scottish economy" says William Walker, SNP Councillor for West Fife and Coastal Villages.
"The Society has a proud history as a long-term mutual building society, owned by its depositors, whose only crime has been to get caught up in the financial excesses of other converted societies and banks who offered ridiculous home and other loans and indulged in dubious debt trading trading practices".
Cllr Walker continued: "The chickens are now coming home to roost with DBS due to announce a £26 million loss due mainly to having to write off bad debts on its loans in the commercial property market. Other losses may follow. It should be made quite clear that property markets in the USA and UK were grossly over-heated thanks to easily-obtained loans available over the last ten years or so in the new 'get rich quick culture' much favoured by Prime Minister Gordon Brown. This was not a practice favoured by the DBS who operated along traditional lines, yet some of its own loans have now fallen fowl of the property value decline created by others".
"Although small by international standards, DBS is Scotland's biggest building society. Already a takeover by another larger society or bank is being talked of. This must not be allowed to happen as it would lead to even more job losses beyond those already announced and lead to yet another financial institution losing its HQ in Scotland. The London Government could help by guaranteeing DBS's capital position, a tiny commitment compared with the multi-billion support already giving to Lloyds/HBoS and the RBS.
"The Scottish Government is also 'on the case' and it may be that a deal can be worked out there, despite the lack of economic powers devolved from London. It is ironic that here in Fife, the home constituency of Gordon Brown, the founder of 'prudence' and supporter of 'light touch banking regulation', this should happen.
Cllr Walker concluded: "We shall see now whether this Prime Minister can own up to any personal responsibility for the results of his years of financial mis-management or take immediate steps to guarantee the independent future of a major Scottish institution". the Dunfermline Building Society".
ENDS
For further information contact:
Cllr William G Walker
SNP Councillor - West Fife and Coastal Villages Member - Fife Council EE&T Committee Member - Carbon Emissions Reduction Board Member - Forth Estuary Transport Authority (FETA)
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