Mutualisation will save the banking system!

Wasn\’t that what we were told?

I know, I know, I\’m repeating myself but this story is simply too lovely not to keep referring to it.

Evidence is mounting that Britain\’s ­building societies engaged in a splurge of mortgage book buying and risky commercial lending during the property boom that is now threatening the financial credibility of the entire sector.

Looks like those mutuals, those saviours, those cumbaya singing community types, were making exactly the same mistakes as everyone else.

2 comments on “Mutualisation will save the banking system!

  1. No doubt one of the building societies biggest cheerleaders, Richard Murphy, will note this on his blog and come up with a “solution” (prediction, some variant of governmental hosing of tax dollars in their direction).

    Probably will be written right after he gets around to acknowledging that waste of tax monies regarding those MP expenses. In other words, never.

  2. Yes, a lot of them did it, but not all of them. The same with banks – some were more reckless than others. So that’s not the point.

    The real dividing line seems to be between ‘old’ banks, who are doing badly, and ‘demutualised’ BS’s (NR, Halifax, B&B), who let all these new borrowing/capital raising powers go to their heads and are doing even worse.

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