Shame on Labour and shame on Gordon Brown.
I cannot believe that Gordon Brown and his Government are planning to sell off the Dunfermline Building Society as reported on the BBC website.
Willie Rennie MP who represents Dunfermline & West Fife (and is also Gordon Brown's MP) has been campaigning to save the Building Society and you have to question why the Government has turned it's back on this Building Society given what support they have given to every other bank in the UK.
The Government, the Bank of England and the Financial Services Authority have apparently decided they cannot save the Dunfermline - why not?
Jim Murphy MP blamed it on bad management, so how came the Government has stepped in and saved other Banks who have also had bad management?
It really is hypocritical of this Government to deal with this so differently to the other badly managed banks.
The elections on June 4th are going to be used as a referendum on this out of touch Labour Government even though these forthcoming elections are more important than that and should be about who represents us in the European Parliament, fighting for Scotland. This Government has badly managed the economy and it is time for a change.
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4 comments:
hello andrew.it is simple.
brown is trying to strip
scotland before the next
election.
labour dont want scotland
to have any assets.
remember browns words,,
,,i will do everything in
my power to keep scotland
in the union..
bob.
The initial intent was to bail them out as other financial groups largely were. However, further investigations have found that the business is so lacking in assets and viability that it wouldn't have any hope of fufilling the conditions other banks have been required to meet to get a full bailout.
The same thing happened to bradford and bingley so this is not some special discrimination. The government should be trying to protect creditors and savers from the fallout while getting the best deal for the taxpayer, not writing every institution a blank cheque of taxpayers money.
The Dunfermline is a 'MUTUAL' institution - i.e. it is owned by its members - those investing in it. The Investors own it. So if it is sold - who sells it and who takes the proceeds? - The Members. Or is there something else going on. Will the Government sell it like it sold the old TSB years ago, also owned by its Members and then pocketing the money for itself.
* Anyway what about the Building Societies protection fund, into which they all contribute annually and have done so for many years. cannot this fund be used to restore the DBS to robust health?
The reason the government is selling it and keeping the proceeds is because it is completly insolvent. It has no worth whatsoever, if it was sold without government intervention as a going concern the members would get nothing, because noone is going to buy its box of toxic assets.
The government will try and sell the branch network so that it can continue to operate- saving jobs and services. It will probably have to keep many of the bad assets and debts for itself because they are worthless or worse.
When banks collapse, shareholders don't get payment because it would be worthless without taxpayers money. Despite many peoples affection for mutuals the same principles apply.
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