Bad credit bank goes under
London Scottish bank, which specialised in lending to people with bad credit, today went into administration. Ernst & Young have been appointed as administrators for the bank.
LSB has roughly 700 employees and 10,000 savers who hold £250 million in deposits. The government has promised that no customer with LSB will lose their money.
LSB revealed that it lost £7.4 million within just six months prior to April 2008.
December 2nd, 2008 at 6:08 pm
Not good… although I have to say I’ve never heard of these guys before, so I’m not going to worry too much.
December 8th, 2008 at 8:53 am
Hardly surprising that a bad-credit bank would go under; I would expect them to be the first casualties of a recession caused by bad-credit lenders.
December 15th, 2008 at 3:29 pm
I don’t know whether the fact that they were a bad-credit bank meant their own investments were riskier or more conservative. Either way, Adios…