Building societies have hit out against a Government refusal to bring in new laws to protect them from carpetbaggers.
A Treasury select committee has thrown out a recommendation only savers who have been with the building society for two years should benefit from demutualisation windfalls.
A further recommendation which would have given borrowers the same voting rights as savers has also been rejected.
Both recommendations were seen as essential to prevent carpetbaggers from opening accounts with mutuals in the hope of picking up windfalls if they later convert to a bank.
Leek United chief executive Neil McFadden says: "It is fundamentally disappointing. The Government has to understand building societies are a tremendous asset to the community."