Chancellor Defends Take Over of Dunfermline BS
March 31st, 2009 by 
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Reckless lending led Scotland’s largest mutual to the brink of collapse, with expected annual losses of more than £24 million forcing the Government was to step in.
The First Minister, Alex Salmond has today questioned why the Nationwide had received so much public money when as little as £60million would be enough to keep Dunfermline BS trading.
Alister Darling who said his children have savings accounts with the Dunfermline, claimed the Government was left with no other option but to sell the profitable parts off.
Under the new deal assembled deal, the accounts of 300,000 Dunfermline depositors and £1billion book of ‘good’ mortgages will transferred over to the Nationwide BS.
All savers will be protected, with Nationwide being paid £1.6billion to cover the difference between Dunfermline’s liabilities and assets.
The 140-year-old brand name of Scotland’s largest building society will remain, and all 530 staff and 34 branches will transferred. However there will likely be redundancies from the Dunfermline’s headquarters.
In a statement to the Commons, Mr Darling said the sale was agreed after the Financial Services Authority (FSA) had concluded the firm was effectively insolvent after a series of disastrous
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