The cut and thrust of conversion

Article Abstract:

United Kingdom building societies have been reduced in number through acquisitions and stock market flotations which are continuing in 1997. Members have sometimes received bonus payments, but there is a dispute over the longer-term impact. The Consumers' Association and MoneyFacts argue that mutuals offer a better deal for borrowers and savers, and mutuals do not have to pay stockholders. Companies that have lost their mutual status argue that they are more efficient so can offer a better deal.

Personal finance

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Too little too late

Article Abstract:

The UK government plans to change legislation relating to savings and loans associations, or building societies, in order to protect those seeking to preserve their mutual status. Societies planning to merge would have protection from hostile takeovers for a maximum of 12 months. The planned legislation is seen as unlikely to prevent consolidation from continuing, according to analysts, who argue that the plans have been announced too late and involve too high a degree of protection.

Laws, regulations and rules, Acquisitions and mergers

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Staying mutual: what is it worth to you?

Article Abstract:

Some UK building societies are losing their mutual status in 1997 and paying bonuses to members. Those that are remaining mutuals argue that the bonuses do not compensate for the loss of mutual status, since mutuals can offer better rates for borrowers and savers. They do not have to pay dividends or be worried about stock prices and members can benefit from profits. This is not necessarily born out by league tables of savings rates, and bonuses are immediately attractive to members.

Banking industry, Prices and rates, Bank fees

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