It is of course bankers with their pursuit of profit to blame

The financial regulator has been seeking a rescuer for Manchester Building Society but has been turned down by Nationwide, Britain’s largest society.

The Prudential Regulation Authority has been trying to find ways in recent weeks to save the Manchester, which has 18,000 savers including a few with deposits of more than the £75,000 guaranteed by the government. The society also has 3,000 borrowers.

Oh, you mean mutuals also fall foul of fractional reserve banking from time to time? Oh my, what dos that do to the Spudmonster’s diatribes?

4 thoughts on “It is of course bankers with their pursuit of profit to blame”

  1. Actually, isn’t it the regulator who is preventing the Society from adding any new assets and therefore stopping it from growing its way out of trouble?

  2. Without knowing the intricacies of this case, a trad Building Society must be struggling with low interest rates that erode their customer deposits which is necessary to sustain the lending operation. Money market operations to shore up deposits means that spreads are too thin. Blame Carney.

  3. When there were lots of building societies they would band together to catch a fellow society that had fallen and cannibalise it and redistribute its members. Preserve the membership and their assets/loans but discard the dead corporate body. After so many mergers and take-overs there isn’t that breadth in the industry any more.

  4. Having tripped over reality, I’m quite sure Murphy will pick himself up off the pavement, give the suit a bit of a brush off, and then carry on as if nothing ever happened.

    What else is he equipped to do?

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