Nationwide to raise rates

Article Abstract:

UK based building society, Nationwide, is to increase its interest rates from 01 September 1998. The changes will go ahead regardless of whether or not the Bank of England decides to raise interest rates during early August. The company has resisted raising its rates for nearly a year despite three base rate increases in August and November of 1997 and April of 1998. However from September its rate will rise by 0.6%, although the rate for savers is expected to be higher than that for borrowers and mortgage holders. Despite the increase the Nationwide's rate will still remain below that offered by converted societies, by as much as 0.25%. Analysts have previously predicted that the Nationwide would not be able to sustain its low 8.1% rate for very long, although the society only committed itself to the figure until 01 August 1998. The news is expected to annoy those people who voted for the company to stay mutual on 23 July 1998, in the hope that mutual status would mean that Nationwide would continue to offer the lowest interest rates.

Comment:

Will increase its interest rates effective 9/1/978

Services information, Savings & Loan Assns, Savings Institutions, Savings and loan associations

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Nationwide to finesse voting

Article Abstract:

In an attempt to persuade members to vote against conversion to a bank and ensuing windfall payments, Nationwide, the UK building society will announce the names of those elected to its board of directors on 22 July 1998, a day before voting on conversion to a bank takes place. The company hopes that the board's composition which may include Michael Hardern and Andrew Muir, who are in favour of converting to a bank, will encourage members in favour of mutuality to vote even though they won a convincing victory at the 1997 AGM. Since then, an extra 600,000 so-called carpetbaggers will now be eligible to vote, possibly in favour of conversion to a bank.

Comment:

Will announce names of those elected to its board of dirs on 7/22/98 a day before voting on conversion to a bank takes place

Executive changes & profiles, Nondepository Credit Intermediation, Nonbank Credit Institutions, Financial institutions

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Similar abstracts:

• Abstracts: Nationwide clamps down on staff over poll Nationwide lobby battles conversion Nationwide faces vote challenge

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