It's a pity mutual Nationwide isn't keen to bite into Northern Rock

Nationwide has ruled out bidding for Northern Rock.

"Proud to be different" is Nationwide Building Society's slightly self-satisfied slogan (£1.5m last year for chief executive Graham Beale is not that different) but there was good reason to boast. A provision of only £16m for mis-selling noxious payment protection insurance (PPI) is indeed very different from the banks' clean-up costs.

A reminder: Lloyds Banking Group's PPI provision is £3.2bn; Barclays' is £1bn; Royal Bank of Scotland's is £850m; HSBC's is £268m. Yes, £16m compares "very favourably," as Beale says. It would be a good basis from which to pitch to buy Northern Rock from taxpayers at a modest discount to fair value – get the Rock into trustworthy hands would be the argument. But Nationwide is not interested. A pity.


Source: guardian.co.uk