Fears that losses at the Derbyshire and Cheshire building societies would spark a Northern Rock-style customer upheaval drove the rushed takeover of the mutual lenders by Nationwide, sources close to the deal said yesterday, reports The Independent.
The Financial Services Authority gave approval for the societies to push through the mergers without a vote from members at either Derbyshire or Cheshire, who will get no windfalls from the deals. Derbyshire suffered a £17m first-half loss as credit losses mounted from commercial lending and sub-prime mortgages. Cheshire was hit by an £11.5m charge for a single commercial property loan, sending it to a £10.5m loss for the first six months of the year. Graham Beale, chief executive of Nationwide, said: "They [Derbyshire and Cheshire] were concerned that in reporting a loss that was quit...
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