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Thread: Manchester BS

  1. #41
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    According to the most recent news on the Manchester Building Society website (which is dated 30/1/19) "The Society is considering its position as to whether to request leave to appeal this decision." Appealing against a failed appeal? Doesn't seem likely to succeed!

    Manchester also say "There continues to be material uncertainty regarding the long term future of the Society. The Society will continue to discuss and consult with its regulators on the next steps and on the capital position of the Society."

    Seems obvious, seeing as the Manchester themselves have admitted being in a state of material uncertainty for at least three years now, no one is remotely interested in taking them over.

    Nationwide have previously refused to. Probably in part because it is too small to be worth the bother (Nationwide is 750 times bigger by asset size) but also because of the toxic nature of the Manchester PIBS. I don't claim any understanding of PIBS but I would guess it is LEGALLY possible for the investments to just be written off.

    However can't imagine Nationwide want to touch it with a bargepole in case it creates a story in the press along the lines of 'War hero Alf and wife of sixty years Elsa are destitute after investing their life's savings in PIBS with the Manchester Building Society. Now part of the NATIONWIDE BUILDING SOCIETY group who's bosses paid themselves millions this year...'

    Indeed I suspect because of the PIBS no one wants to touch them but the physically closest located society would be the Vernon. The Stockport based Vernon are about the same size as the Manchester. The fact Manchester closed it's only actual branch in April 2018 should make a takeover slightly easier.

    On the other hand a problem for the Vernon is - as I mentioned myself earlier in this thread - oddly enough Manchester has three agencies. One in Cheshire, one in Cumbria and (somewhat unexpectedly) one down in Devon. Vernon have been very parochial for a while now and state they only open accounts for people living within 25 miles of Stockport. I don't think the Manchester customer base will appeal.

    Speaking personally I have never cracked the Vernon but do have a Manchester account. Would suit me down to the ground if the Vernon did take over the Manchester. I am not confident they will.

    Skipton recently took over the Holmesdale. Suspect, once they have finished digesting that, they might be tapped by the BSA to take on the Manchester. Otherwise the Leeds or The Yorkshire might be pressganged.

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  2. #42
    Expert planteria will become famous soon enough
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    i think pressganging might well be required, as it certainly seems that no other society is willingly offering to absorb Manchester Building Society. their licences can't have been appealing enough to other buyers either - where are JCFlowers when the FCA need them?
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  3. #43
    Junior Member Happybagger is an unknown quantity at this point
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    As regards the longstanding member here and from cb.com who had MBS PIBS, they knew the risk.

    Same as anyone investing in shares. Never any guarantee.

    Whoever would be interested in MBS customer base now is questionable, it has been cut over recent years. And as mentioned, the brand is toxic.

    IIRC when societies merge, if there is a substantial difference in size, the members of the smaller society get to vote. If they are similar sized, both societies members have to approve the vote.

    Can't see Vernon members approving. They will be aware of the state of MBS being local
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  4. #44
    Expert planteria will become famous soon enough
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    if the will is there i reckon they would propose a merger which would either not require VBS members to approve. alternatively, even a small sweetener would tempt enough VBS members to support their board - bearing in mind that most blindly support their boards regarding everything they propose with no incentive at all.

  5. #45
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    As I said I would love the Manchester and the Vernon to merge but I do not see it as very likely.



    I am wondering whether the Manchester will be encouraged by the BSA to simply "dissolve" (I believe is the expression) and go. The mortgage book can probably be moved to another society or even sold commerially. Savers given time to move ISAs without penalty or they and non-ISA savers get a cheque for their closing balance. The PIBs holders get little to nothing but their complaint dies with the Manchester.


    Can't say I recall it but apparently the most recent Building Society to "dissolve" was The First Salisbury in 1980. That was a "terminating building society" which (from context) I assume means it was never intended to be a "permanent" society.


    I searched for and failed to find the most recent building society to actually, genuinely fail. I vaguely recall a London based society actually went bust in about the 1960s? Or is that a fake memory?


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  6. #46
    Contributor EarthBoy is an unknown quantity at this point
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    Quote Originally Posted by 1User View Post
    I searched for and failed to find the most recent building society to actually, genuinely fail. I vaguely recall a London based society actually went bust in about the 1960s? Or is that a fake memory?
    It depends what you mean by "collapse" but several building societies would have gone under if they'd not been rescued, most recently the Dunfermline Building Society in 2009. In that case, it was forcibly broken up using new powers under the Banking Act 2009 and the good bits were sold to the Nationwide, whilst the bad bits were taken over by the Bank of England. The authorities could use the same legislation to break up the Manchester, and that way no other building society would have to be saddled with the bits of the business that they don't want.

    Prior to the Dunfermline, other building societies which needed rescuing included Grays Building Society in 1978:

    https://www.theguardian.com/money/2008/oct/11/banks

  7. #47
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    Earthboy,

    I think Grays (Essex - near enough to London!) was the one I had at the back of my mind.

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  8. #48
    Expert planteria will become famous soon enough
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    the Manchester being dissolved would be interesting.. but i'd have thought a forced break up is more likely.
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