Monday, September 29, 2008

The end of the demutalised building societies



As this article points out, the nationalisation of the B & B means that all the demutalised building societies have been either taken over by other banks or nationalised. The claims they made at the time of demutalisation that this would make them better able to compete in the marketplace have proved false.

The only people who seem to have profited from demutualisation are the bosses of the firms - who paid themselves much higher salaries as they changed their organisations from building societies into banks - and those who gained fees and commissions from the process.

The carpet-baggers and other account-holders who got free shares, if they sold them, have managed to make a few hundred pounds. However, they have ended up paying more for mortgages and other financial services than they would have if their providers had stayed mutual.

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