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Building society concerns raised Building society concerns raised
(about 1 hour later)
Concern has been raised over the future of Scotland's largest building society, amid reports it may have to be bailed out by the UK Government.Concern has been raised over the future of Scotland's largest building society, amid reports it may have to be bailed out by the UK Government.
Dunfermline Building Society insisted it was "business as usual", following media reports of problems with its commercial loans book.Dunfermline Building Society insisted it was "business as usual", following media reports of problems with its commercial loans book.
Dunfermline and West Fife MP Willie Rennie urged ministers to resolve the issue quickly.Dunfermline and West Fife MP Willie Rennie urged ministers to resolve the issue quickly.
He told BBC Scotland he had received concerning "reports from the ground".He told BBC Scotland he had received concerning "reports from the ground".
In a statement, the building society, which was set up in 1869, said "It is not our policy to comment on rumour or speculation.In a statement, the building society, which was set up in 1869, said "It is not our policy to comment on rumour or speculation.
"We will continue to look after our members' best interests and it's very much business as usual." "We will continue to look after our members' best interests and it's very much business as usual." This is an important building society that's been around for 130 years, with 30-odd branches and a similar number of agencies Willie RennieMP, Dunfermline and West Fife
'Stand ready' Liberal Democrat MP Mr Rennie, whose constituency takes in the Dunfermline's headquarters, told BBC Scotland's Politics Show UK ministers should consider offering help under their recapitalisation programme, which was used to help save The Royal Bank of Scotland.
Liberal Democrat MP Mr Rennie, whose constituency takes in the Dunfermline's headquarters, spoke to BBC Scotland's Politics Show.
"I've got great concerns about the reports that have been in various newspapers over the last few days and reports I've heard on the ground, sufficient to stir me into making sure the Scottish secretary, the prime minister and the (Scottish) first minister take this seriously and explore every possible avenue to make sure the Dunfermline Building Society remains independent and Scottish, but also mutual and strong," he said."I've got great concerns about the reports that have been in various newspapers over the last few days and reports I've heard on the ground, sufficient to stir me into making sure the Scottish secretary, the prime minister and the (Scottish) first minister take this seriously and explore every possible avenue to make sure the Dunfermline Building Society remains independent and Scottish, but also mutual and strong," he said.
Dunfermline, a major mortgage lender, is also involved in the provision of social housing in Scotland. Mr Rennie said building societies were being "penalised" under the Financial Services Compensation Scheme - which helps people who lose money if their bank, insurance company or other financial firm goes bust - because they held higher values of deposits.
The Scottish Government would not be drawn on claims it was planning a rescue package of its own. And he questioned whether the same capitalisation rules "riskier" banks have to abide by should be applied to building societies.
"This is an important building society that's been around for 130 years, with 30-odd branches and a similar number of agencies," he said of the Dunfermline, which is a major mortgage lender.
"People trust this institution and, if this falls away, then I don't know how much confidence we could have in the financial sector."
'Standing ready'
Scottish Secretary Jim Murphy said he did not comment on speculation, but added that the UK Government had not allowed any financial institution to fail.
"Regardless what happens in any building society or bank, the UK Government stands ready to support savers, those who have got their mortgages or anyone who's investing in these institutions, to make sure that savers in particular and mortgage-holders, are not affected."
The Dunfermline is also involved in the provision of social housing in Scotland, but Scottish Government would not be drawn on claims it was planning a rescue package of its own.
"We have no specific comment to make, except reiterate that we always stand ready to engage constructively in the interests of Scotland in areas which reflect our responsibilities for employment and social housing," said a spokesman for First Minister Alex Salmond."We have no specific comment to make, except reiterate that we always stand ready to engage constructively in the interests of Scotland in areas which reflect our responsibilities for employment and social housing," said a spokesman for First Minister Alex Salmond.
The Financial Services Authority watchdog said it could not comment on individual institutions.The Financial Services Authority watchdog said it could not comment on individual institutions.