Mergers That Failed Mutuals Members ; Angry Investors Say the Building Society Rescues Ignored Their Opinions and Rights

Summary

---

THIS has been an unprecedented year for building societies. The credit crunch, together with unfortunate investments in Icelandic banks, have consigned five societies some of which have been operating for more than 150 years to the history books. It is farewell to an independent Barnsley, Catholic, Cheshire, Derbyshire and Scarborough. And though no member of a building society is yet out of pocket as a result of these rescues and takeovers, many are deeply unhappy over the way consolidation is taking place.

They believe that for the sake of expediency their views, interests and rights have been ignored. Some are demanding that the Financial Services Authority, which oversees these rescues and often directs them, adopts a more member-friendly approach.

See the full content of this document

Extract

---

Mergers That Failed Mutuals Members ; Angry Investors Say the Building Society Rescues Ignored Their Opinions and Rights

In four of the five rescues announced this year, members of the acquired society have not been allowed to vote on the deal. Nor have they been offered windfalls, even though cash payouts are usually given when a buildi...

See the full content of this document

---