View more on these topics

Nationwide pushes Manchester Building Society to carry out financial review

The lenders that bailed out Manchester Building Society two years ago have hired investment bank Rothschild to carry out a review of its finances.

The Sunday Times reports Rothschild has been brought in by Nationwide and the other lenders that supported the mutual when it was forced to raise £18m in April 2013.

The Manchester incurred huge losses after purchasing an interest-rate swap to protect it from movements in wholesale lending rates.

It raised the cash through profit-participating deferred shares.

The building society lost £1.6m in 2013 after taking an £8.7m write-down, the majority of which is thought to be connected to the swap.

In the first half of 2014 it made a £1.6m pre-tax profit, although it did not write any new mortgages over that period.

Nationwide and the other backers have called in Rothschild to conduct a valuation assessment on their investment. Sources say this is widely seen as a prelude to another fundraising by the Manchester.

The Manchester and Nationwide declined to comment. Rothschild could not be reached for comment.


Wayman-Caroline-FOS-2013 700 x 450.jpg

FOS spends £400k on office move

The Financial Ombudsman Service has spent £400,000 on relocating to a new office building, Money Marketing can reveal. Last year, the organisation relocated from South Quay Plaza to Exchange Tower, both in London Docklands. Responding to a Freedom of Information request from Money Marketing, the FOS says the annual rental cost for South Quay Plaza […]


Wells Street Journal: Slap in face for Kean adviser

The seemingly constant stream of negative financial services headlines has undoubtedly damaged the reputation of everyone in the industry. And, as Thameside owner Tom Kean found out this week, advisers are no exception. Kean was contacted by an intermediary, known only as “Ken”, about a friend who needed reassurance about his financial affairs. In a […]


Does rising proc fee chasm create mortgage misselling risk?

Experts have raised the alarm over the widening gap between lenders’ procuration fees after the FCA warned it could intervene in the market. Several lenders including Accord Mortgages, Leeds Building Society, Monmouthshire Building Society, National Counties Building Society, NatWest Intermediary Solutions, Skipton Building Society and Virgin Money have increased the fees they pay brokers for […]

Protecting long-term savings from short-term policy

By Jamie Clark, Business Development Manager The pensions revolution is almost upon us. As with any revolution, there will be winners and losers. The winners in this case could presumably be the politicians that orchestrated pensions freedom and choice just before the general election. As for the losers, there may be many thousands of people […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm