Financial Times FT.com

Dunfermline set for forced sale

By Andrew Bolger in Edinburgh and Jim Pickard in London

Published: March 28 2009 23:21 | Last updated: March 29 2009 23:04

Taxpayers are set to end up owning the loan book of Scotland’s largest building society after ministers and regulators decided a rescue of the entire institution was not viable.

The government is trying to engineer a rescue of the Dunfermline Building Society which will involve a sale of the healthy parts of the group - perhaps to Nationwide or the Yorkshire Building Society - while taxpayers are left managing its “toxic” assets.

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