Dunfermline taken over by Nationwide

by Kirstyn Smith

Dunfermline Building Society has been bought by Nationwide, it has been revealed today.dunfermline

The institution’s collapse, which resulted in  losses of £26 million, meant that it had to be put up for sale.

Today’s statement from the Bank of England reports that it  agreed to sell “core parts” of the 140-year-old establishment, adding:

“It is business as usual for all customers. Dunfermline’s deposit business will continue to operate normally. Savers can be assured that their money is safe.”

It is reported that the staff who number approximately 530, will not lose their jobs and will be transferred to Nationwide when the takeover becomes effective.

Only 48 hours has elapsed since  news broke of the organisation’s anticipated losses. Nationwide plan to take Dunfermline’s retail deposits on board, which total £2353 million and represent the accounts held by approximately 300,000 Dunfermline customers. They will also take over 34 branches and retail sites and the Society’s Head Office in Dunfermline.

The chief executive of Nationwide, Graham Beale, is positive that the takeover will be a successful move for all involved:

“This is good news for the members of Dunfermline, who are now joining the world’s largest building society. As members of a solid, stable and dependable organisation, members of Dunfermline can be assured that their savings are safe.”

While Prime Minister Gordon Brown has defended the Government’s action at this time, Dunfermline’s outgoing chairman, Jim Faulds, said that government funding of £20m-£30m would have helped secure its future, describing himself as “deeply disappointed” that the government did not provide the support needed for the building society to continue as an independent operation.

The situation has also caused outrage among members of the public, and a protest about the sale took place at the  Dunfermline’s  Head Office this morning.