Nationwide has snapped up the core business of Dunfermline Building Society, following a sale process conducted by the Bank of England (BoE) over the weekend.
Dunfermline's retail arm and its £1bn book of healthy mortgages has been transferred to Nationwide as a result of the negotiations. However, the mutual has refused to take ownership of the high-risk assets, which will now transfer to the taxpayer, to sit along the bad loans made by Bradford & Bingley.
Dunfermline's retail and wholesale deposits, branches and head office have also been transferred to Nationwide.
In a statement this morning, the BoE said Dunfermline's deposit business would continue to operate normally, while branches and telephone banking will continue to open during their normal hours.
All of Dunfermline's staff have been transferred to Nationwide.
The BoE says its decision to transfer parts of Dunfermline's business to Nationwide was designed to protect depositors and safeguard financial stability, following a significant deterioration in Dunfermline's financial position.IFAonline
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