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Chelsea Building Society set to merge with Yorkshire

Chelsea Building Society is in advanced talks with Yorkshire Building Society over a potential merger.

If a merger goes ahead it would create a combined group with assets over £35bn.

The news comes as part of a strategic review at Chelsea at the start of which its new chief executive Stuart Bernau said he would look at all options for the society including possible mergers.

In August, Chelsea posted a £26m loss for the first half after a £41m mortgage fraud. Its previous chief executive Richard Hornbrook and finance director Andrew Parsons quit the same month, although the society insisted this had nothing to do with the losses.

In March, Chelsea posted £29.2m losses due mainly to £55m exposure to the Icelandic banking collapse, but the mutual says it has now exited its Kaupthing Singer & Friedlander position with a £9m gain compared to its provision.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Oh dear, poor old Yorkshire BS members..

  2. What a shame that the organisation didn’t manage its communications process properly and have the courtesy to let its staff know before the 1st customer walked into a branch and demanded to know how the merger would affect them!

  3. What acts were introduced to increase competition within the banks/building society regime???

    All that seems to have happened over last 15 years is the opposite- I blame the FSA

  4. I used to work for the Chelsea Building Society many years ago through one of its partners Norwich Union and am not surprised to see that it has fallen into trouble. Managers and staff aggressively targeted on amount of mortgage lending, like so many other big organisations that have fallen into troubles recently. Should they be allowed to merge no as this will dilute further choice on in the market place. This did happen with the FSA in place but it is now time that the FSA to cracks down on reckless lending in the future for if not we will be doomed to repeat this for future generations. When you have bank staff but more interested in their bonus then the suitability of a mortgage for the client and am sorry to say that the system is wrong it is also true of some of the people in our industry the workers mortgage brokers. I read with interest in the nationwide are trying very hard to push up the market with this constant commentary each month on house prices. This is so so so wrong!! I’m afraid of Chelsea cannot make it on its own then it should be allowed to go bust but I do not feel that they should be allowed to merge with another Building Society reducing competition even further.

    I am of course very sorry for the staff.

  5. Does anyone know what wopuld be the likely outcome for the Yorkshire BS carpetbaggers that invested in the 90’s into this mutual, as the Chealsea is not a PLC…

  6. i am sorry for the good staff that work at the chelsea, but not so for the greedy staff and over paid management that are only interested in a bonus, they are not fit to hold a job in finance and should be sacked, the good staff could do a better job if it was left to them ,and as for the FSA, one word for them is USELESS, and no sign of the NATIONWIDE yet, not in line for a free building society, they have taken over at least 6 building society,s in the less than 5 years, so wake up chelsea and stop losing savers their money.

  7. I invested a big chunk in an ISA in 2007 at Yorkshire. I expect i don’t get any nice carpetbagging gifts from this do I?…. at least that would soften the blow of yet more monopolisation…

  8. the proposed merger of yorkshire is so loaded for yorkshire that it is a takeover in disguise as a merger. chelsea members should say no unless there is a windfall.

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