13
Oct
Building society announces capital booster fund
Nationwide building society, one of Britain's biggest mortgage
lenders, has said it will seek to raise more capital.
Although it is not in trouble and does not need to dip into the
government capitalisation fund in the way the Royal Bank of
Scotland, Lloyds TSB and HBOS have done, the lender said it would
nonetheless seek £500 million in extra capital from the fund
to bolster its position.
Such a move could help the lender increase the availability of its
mortgages.
Following decisions by eurozone governments to follow the UK
example and take stakes in their banks after a meeting attended by
Gordon Brown at the weekend, the prime minister expressed optimism
that the liquidity situation will soon pick up both in Britain and
elsewhere.
He said: "I believe that in the next few days confidence in the
banking system will be restored."
