Dunfermline buyer will be announced

12 April 2012

A buyer for the ailing Dunfermline Building Society is expected to be announced.

The lender, the latest casualty of the economic crisis, is to be broken up and sold after racking up millions of pounds in losses.

The Treasury has rejected calls to bail out Scotland's largest building society, with Chancellor Alistair Darling saying a long-term arrangement must be sought.

Dunfermline chairman Jim Faulds, who has accused ministers of "sacrificing" the 140-year-old institution, said he believed the successful bidder would be identified on Monday.

Two rival building societies and two banks are understood to be in the frame.

Mr Darling said the building society needed between £60 million and £100 million to continue. However, Mr Faulds insisted the situation was not as black as was being painted, maintaining that the Dunfermline could remain as an independent institution.

The Government stepped in to protect depositors ahead of an announcement expected this week of losses of £26 million.

Scottish secretary Jim Murphy said ministers were considering separating out its "toxic" assets while selling on the profitable parts to other financial institutions.

First Minister Alex Salmond said there should have been a capital injection into the Dunfermline, to which he said the SNP administration would have made a "significant" contribution.

Mr Salmond said he suspected the Treasury was reluctant to spend more money given the state of the public finances.

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