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.
The deal followed the FSA's ruling that Dunfermline was likely to fail to meet its threshold conditions for authorisation and that there was no other option available which would have enabled the company to satisfy the threshold conditions. 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, branch...
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