The Derbyshire Building Society - a Paragon of Mutual-ism?

Category: DAG Public News

 

 

Circumstantial evidence would indicate that the Derbyshire Building Society’s negotiations for the sale of Derbyshire Offshore to Kaupthing Singer and Friedlander IoM were well advanced by late summer 2007 (the KSFIoM parental guarantee a necessity for the sale to comply with the Derbyshire Offshore's customer terms and conditions was put in place on the 17th of September 2007) Yet the Derbyshire Offshore continued to cynically accept new deposits up-to and in some cases beyond the announcement of the sale on the 20th November 2007 continuing to trade upon the fact that they were fully backed by the Derbyshire Building Society and the security implied by the protection of a British Mutual. This was no oversight but a deliberate policy of non disclosure of information which would be pertinent to an individual's decision to become or to remain a depositor particularly for those contemplating fixed term savings. When questioned on their failure to disclose information on the impending sale to customers Close Bank IoM who managed Derbyshire Offshore for the Derbyshire Building Society replied.

 

CBIOM was not permitted by either vendor or purchaser to make any comment in respect to the pending transaction until all regulatory clearances were held and a public announcement had been made; and

CBIOM was given instructions from both the vendor and the purchaser that in the period up to the completion of the sale transaction (which occurred in December 2007) we were to undertake an accept business as usual onto the books of the Derbyshire.”

 

After the failure of KSFIoM when questioned about the details of the sale the Derbyshire denied all responsibility in the affair. Typically their replies to distressed ex-Derbyshire Offshore depositor's enquiries contained such helpful phrases as;

 

Derbyshire Building Society, and the Isle of Man company in which you chose to invest, are and always have been separate legal entities. Therefore, if you are dissatisfied with the information provided to you by the Isle of Man company”.....(couldn't bring themselves to write Derbyshire Offshore?) ….. “or its staff, you should properly direct such comments to that company and its current owners”

 

To this simple author the fact that the Derbyshire Building Society had no legal responsibility for the behaviour of its wholly owned subsidiary when it had directors common to both boards beggars belief. However whatever the legal situation I am in no doubt that the ex-Derbyshire depositors who were neither consulted nor given a choice, have suffered an indisputable moral wrong which goes against all the principles of the Mutual movement and it for that reason I urge you to participate in the events detailed below:

Duffield Hall

 

The DAG anniversary event in support of ex-Derbyshire depositors' to be held in Derbyshire, one year to the day after the demise of KSFIOM.

Venue: Duffield Hall, Duffield (about 7 km north of Derby)
Time: 11 am at Duffield; follow-up in Derby

Main event: release of 250 balloons bearing the message “The Derbyshire sold us out to an Icelandic Bank”.
After the balloon release, we plan to move to the centre of Derby, where we will hand out further balloons and distribute leaflets in front of the Derby branch of the Derbyshire Building Society.

Duffield Hall is the home of the Derbyshire Building Society, whose IOM subsidiary, Derbyshire Offshore, was sold to Kaupthing and integrated into KSFIOM in December 2007, less than a year prior to Kaupthing's collapse. Many of us, loyal and trusting customers of the Derbyshire for many years, reassured by them (at a time when they must surely have known better) that all would be well and nothing would change, will never be able to forgive this act of betrayal. This is a splendid opportunity to show our discontent and hopefully to cause some embarrassment.

We are hoping this event will attract good coverage by the press.

We need maximum support from any DAG members able to get to Derby on the day, whether or not you were with the Derbyshire. Why not bring you family and friends for a day out in Derbyshire!

Please email to This email address is being protected from spambots. You need JavaScript enabled to view it. to confirm your attendance (with numbers).

There is an hourly train service from Derby to Duffield. The most convenient train leaves Derby at 09.50, arriving Duffield 09.57. Please let us know if you would like transport to Duffield Hall and we will do our best to meet you at the station.

 

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