Fife Chamber of Commerce voices opinion on Dunfermline Building Society

”Fife

In order to prevent Scotland’s Dunfermline Building Society from collapse, the UK government will pay Nationwide Building Society £1.6 billion in order to cover the liabilities they have taken on. However, there has been mixed opinions over the way in which the process has been handled.

As part of the deal, the 140-year old Building Society will keep its name which has been received as positive news, as it is a well-known Scottish brand.

The Nationwide said there may be job losses in its back office and support operations, but told the UK Government that there would be no compulsory redundancies at branches for three years.

However not all parties are totally happy with the process as Alan Russell, the chief executive of Fife Chamber of Commerce, said that the Government could have done more in order to save the Building Society, in its entirety rather than a takeover by the Nationwide.

Mr Russell did concede that in the short-term, it is a positive outcome as it will protect branches, jobs, loans and savings.

In return for taxpayers money, Nationwide will take over Dunfermline’s £2.35 billion of retail deposits, its 34 branches and a £1.02 billion mortgage book.

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