West Bromwich rescue deal completed

12/06/2009

The government has stepped in to help out the West Bromwich building society, after the firm seemed to be on the brink of collapse.

A complicated Treasury-backed scheme sees bondholders swap their assets for a type of stock - increasing the firm's financial stability as a result.

Ministers are thought to have been looking for a buyer for the struggling building society for weeks.

Financial pressures from the credit crunch are thought to have put the West Bromwich under threat - the firm has just declared a post-tax yearly loss of £40 million.

If it were allowed to collapse, the financial effects on customers would be very severe in many cases.

Robert Sharpe, chief executive of the West Brom, said that it would be "strengthened" by the move and that it was now "well positioned for the future".

The financial crisis has already led the government to launch emergency bailouts and rescues of the Dunfermline building society and banking giants Lloyds TSB, RBS and HBOS.

Two other firms, Northern Rock and Bradford & Bingley, have been nationalised entirely, so dire was the state of their balance sheets.

Tags; Debt Management and Banking, Young Family Finances,

Regional Debt Advice; Debt Advice Bingley, Debt Advice Bradford, Debt Advice Dunfermline, Debt Advice West Bromwich,

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