Building Societies Association
The merit of mutuality was a well discussed topic at this year’s Labour Party Conference.
At an event entitled, Financial meltdown - who can you trust?, Adrian Coles, BSA Director-General, launched the publication of a report from the Centre for Mutual and Employee-owned Business at the University of Oxford on converting failed banks into mutual organisations.
Mr. Coles argued that financial mutuals can provide a robust alternative to financial services companies in the future and what better way to demonstrate this than to seriously consider returning Northern Rock to the mutual sector?
He stressed that given that remutualisation would strengthen competition and create a more diversified financial sector, it could be expected to generate an advantage to the taxpayer over the long run in excess of the immediate benefit of any capital proceeds in the short run.
Speaking at a Unite event, The feeling's mutual - the case for a diverse finance sector, Rob MacGregor, National Officer Finance & Legal, Unite, said: "Building societies are rooted in their communities. It's vital to support and encourage their development. They offer a very real alternative to the large banks". He went on to call for the remutualisation of Northern Rock and Cheltenham & Gloucester, calling Lloyds Banking Group an 'absent landlord'.
Sarah McCarthy-Fry MP, Exchequer Secretary to the Treasury, said that remutualising Northern Rock has not been ruled out and officials were considering the recent Oxford University report.
The BSA will be speaking at the following events at the Conservative Party Conference – please feel free to join us…
Working together: How can lenders work with consumers / the advice sector to get through the current financial difficulties?
Monday 5 October, 8.00am – 9.15am
Manchester Central, 15-17 Windmill St, Manchester, M2 3GX
Speakers: Liz Barclay, BBC radio presenter and writer (Chair); Mark Hoban MP, Shadow Financial Secretary to the Treasury; Adrian Coles, Director General, BSA and Joanna Elson, Chief Executive, Money Advice Trust.
Financial meltdown – who can you trust?
Wednesday 7 October, 5.30pm-7.00pm
Royce Suite, Midland Hotel, Manchester
Speakers: Adrian Coles, Director-General, BSA; Mark Hoban MP, Shadow Financial Secretary to the Treasury; Carl Elliot, Association of Friendly Societies; Mark Lyonette, Chief Executive, Association of British Credit Unions Limited; Neville Richardson, Chief Executive, The Co-operative Financial Services and Peter Hunt, Mutuo (Chair)
