Spectator
"Might the collapse of Dunfermline Building Society turn into a political scandal? Tonight, Channel Four news has an interview with Jim Faulds, its chairman, who appears to be saying the Treasury have been lying about him. He didn't want a bail out, he says, just a £20m loan (the spin had been that he wanted three to five times that). He also flatly denies Darling's claim that the building society had any sub-prime exposure."
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Building society on Gordon Brown's doorstep collapses days before G20 (The Times)
"The Treasury swiftly sought to place the blame for the collapse on the building society’s own management, hinting that they did not think the company was fit to continue in its current form. They pointed to disastrous investments in Lehman Brothers and an ill-advised venture into the sub-prime mortgage market as responsible for bringing the 140-year-old institution to the brink of collapse. Dunfermline was also one of the last lenders to pull out of the 100 per cent-plus loans market. ....Jim Faulds, the chair of Dunfermline, said this morning that suggestions that the society invested in sub-prime mortgages were wrong and “a scandal” and said that the Treasury had not spoken to the company since October last year."
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Update:30/03/09 Nationwide is PAID ?1.6bn by taxpayers to take over profitable parts of the Dunfermline (Daily Mail)
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