The Nationwide buys Dunfermline after government backs out
The Nationwide is to buy the Dunfermline Building Society's branches. Under the agreement, Nationwide has taken on Dunfermline's retail and wholesale deposits, its branches, head office and most of its residential mortgage book.
The Nationwide said the 140-year-old brand would keep its name but that there may be redundancies from its back office and support operations. The Treasury will take on about £1.5bn of commercial property lending and acquired mortgage debt under the deal.
Jim Faulds, the chairman of Dunfermline, said: "We are deeply disappointed with the government's decision. It was unnecessary. But nevertheless we need to move on and we need to work with the new owners".
The agreement with the Nationwide was struck less than 48 hours after the UK Government announced that the building society was to be put on the market.
The Bank of England used new powers under the Banking Act to rush through the deal and prevent the Dunfermline - Scotland's largest building society - from going bust. The Nationwide has bought the Dunfermline's retail and wholesale deposits, branches, head office and most of its residential mortgage book.
Source: Banking News Date: 30.03.2009 [222]
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