From The BBC:
Two UK mortgage lenders have had to be rescued by the Nationwide Building Society after running into financial difficulties.
The Nationwide will take ownership of smaller rivals the Derbyshire and Cheshire Building Societies with the approval of financial regulators.
Members of the two firms will not get any bonus payments.
Smaller lenders are under increasing strain due to the credit squeeze and rising mortgage defaults.
Adrian Coles, director-general of the Building Societies Association (BSA), welcomed the rescue by the Nationwide, but said that the problems were not reflected in the wider sector.
“Overall, the building society sector is coping well with the current difficult conditions in the housing market,” he said.
“I’m very confident there are no other building societies in a similar position currently to that of the Derbyshire and the Cheshire.”
Job losses
The deals are expected to be completed by the end of the year subject to approval by the Financial Services Autho…
Leave a Reply