Bank forced into administration

by GD Mon 01 Dec 2008, 12:55 pm

The FSA stepped in to stop London Scottish taking deposits

London Scottish Bank has gone into administration after the Financial Services Authority stepped in to stop it accepting deposits.
The FSA acted because the Manchester-based firm did not have the amount of cash it needed to continue operating.
HM Treasury issued a statement saying that all retail depositors would get their money back, even those with more than £50,000 in their accounts.
Officially, only the first £50,000 is supposed to be protected.
The accountancy firm Ernst & Young has been appointed as the administrator.
In February, London Scottish announced it was ending its lending business to focus on its debt collection unit, Robinson's Way.
It specialised in council right-to-buy mortgages and those for high-rise flats.
London Scottish had been looking for a buyer for the group, but said there was no certainty that its discussions would lead to an offer being made. (from BBC News)