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Dunfermline savers' money protected
Savers have been reassured that their money is safe as the Government was forced to step in to save Scotland's biggest building society.
Dunfermline Building Society is to be bailed out by the Government
Potential buyers are being sought for the Dunfermline Building Society which is on the point of break-up after racking up millions of pounds in losses.
Scottish Secretary Jim Murphy said the Government was stepping in to protect depositors in the run-up to this week's expected announcement of losses of £26 million.
He said the Government was considering separating out the society's so-called "toxic" assets while selling on the profitable parts of the organisation to other financial institutions.
Although he did not identify any potential purchasers, the Britannia, Nationwide and Yorkshire building societies have all been linked to a possible sale.
Prime Minister Gordon Brown, speaking in Chile at the end of a five-day international tour, emphasised the Government's commitment to protecting savers throughout the current financial crisis.
"Savers will be protected," he said. "It is important to recognise that throughout this whole crisis, everyone who has been saving in a UK institution has been protected."
Mr Murphy blamed "reckless" decisions taken by the society's former management - including its involvement in the US sub-prime mortgage market - for its current plight.
He said that the Government's priority now was to protect savers while salvaging what it could from the organisation.
The announcement follows the failure of talks last week between Scotland's First Minister Alex Salmond and Chancellor Alistair Darling to find a way of preserving the society.Ooops
Building Society)
Savers have been reassured that their money is safe as the Government was forced to step in to save Scotland's biggest building society.
Dunfermline Building Society is to be bailed out by the Government
Potential buyers are being sought for the Dunfermline Building Society which is on the point of break-up after racking up millions of pounds in losses.
Scottish Secretary Jim Murphy said the Government was stepping in to protect depositors in the run-up to this week's expected announcement of losses of £26 million.
He said the Government was considering separating out the society's so-called "toxic" assets while selling on the profitable parts of the organisation to other financial institutions.
Although he did not identify any potential purchasers, the Britannia, Nationwide and Yorkshire building societies have all been linked to a possible sale.
Prime Minister Gordon Brown, speaking in Chile at the end of a five-day international tour, emphasised the Government's commitment to protecting savers throughout the current financial crisis.
"Savers will be protected," he said. "It is important to recognise that throughout this whole crisis, everyone who has been saving in a UK institution has been protected."
Mr Murphy blamed "reckless" decisions taken by the society's former management - including its involvement in the US sub-prime mortgage market - for its current plight.
He said that the Government's priority now was to protect savers while salvaging what it could from the organisation.
The announcement follows the failure of talks last week between Scotland's First Minister Alex Salmond and Chancellor Alistair Darling to find a way of preserving the society.Ooops
Building Society)
