Demutualisation of building societies started a race to the bottom - Yorkshire Post Letters

I was intrigued by Alan Atkinson’s letter (The YP, July 23) and very taken by his reference to ‘casino banking’.

I was a building society manager for just over 20 years, during the mid-80s at Morecambe and Lancaster.

My area covered a large patch including Kendal.

I came to know A Wainwright the guide book writer on a personal basis who for the last ten years of his life lived in the town. He died in January 1991.

We shared a mutual love of the fells so once a month and always on a Friday I would call at his home around 8.30am where his delightful and diminutive wife Betty would provide a second breakfast of tea and toast while I relived my weekend excursions upon the fells.

On one such occasion during 1987 and whilst talking to Betty, AW took his head out of the Daily Telegraph with a rare business related remark.

‘Time you got out of that building society Bob lad, what they are doing is immoral’.

I had already learnt to think before replying to him, ‘that is alright AW but principles do not pay the bills’. A grunt, then back to the newsprint.

I knew of course to what he referred, the Financial Services Act of 1986 the brainchild of Margaret Thatcher which effectively demutualised building societies to join banks, insurance companies, estate agents et al in one huge all embracing conglomerate.

The seed had been sown, I wanted out but was persuaded to hang on as the senior management were preparing an early retirement plan for the likes of folk my age who had had enough.

During 1989 along with a large contingent of like minded long serving staff I took early retirement calling on AW to advise him of this.

He took his head out of the Telegraph to utter one word, ‘Good’ then it was back to the paper. Betty and I howled with laughter, AW looked up, there was just the faintest hint of a grin then a return to the newsprint.

Thatcher’s actions were a disaster for the housing sector. First she picked up on the NCB who had sold off much of their housing stock to miners at knock down rates.

She followed with Right to Buy based on the NCB premise which for tenants was the best thing since sliced bread yet decimated the stock of social housing.

Then she made funds available en masse for lending, removing at a stroke the need for prudence.

The builders had a field day, prices went through the roof leaving a generation now struggling to get on the first rung of the ladder.

A degree of scarcity of funds was always a good thing.

You do nobody a favour lending them money they cannot afford to repay.

Any fool can lend money, it's getting it back that is difficult.

I never lost a penny by way of mortgage leaving the building society to start a new career as the administrator of a wildlife trust.

The money was rubbish yet the job satisfaction was immense over 13 happy years.