In the spirit of “All politics is local,” British Prime Minister Gordon Brown’s government has bailed out a Scottish building society in his previous district.  The government arranged for the failing Dunfermline Building Society, a financial institution like an American Savings and Loan, to be taken over by The Nationwide Building Society with an infusion of £1.5bn from the Treasury.  (BBC Article)

While news in its own right, especially since Dunfermline was the largest Scottish building society, this raises the hopes of those invested in the failed Presbyterian Mutual Society in Ireland and might put added pressure on Mr. Brown.  As the article from the Belfast Telegraph says:

The [Ulster Unionist Party’s] deputy leader Danny Kennedy said Mr Brown will be accused of
favouritism if he does nothing for the Mutual’s investors after saving the
Dunfermline Building Society, which is in his Kircaldy constituency in
Scotland.

And it goes on to quote Mr. Kennedy

“An intervention of this scale for a local building society is a perfect
template for action over the Presbyterian Mutual. What is sauce for the
Dunfermline goose is also sauce for the Presbyterian Mutual gander,” said Mr
Kennedy. “I now call on the Prime Minister to move quickly to protect the
savings of Presbyterian Mutual investors.”

In another article from the Belfast Telegraph a letter from the Treasury Minister Ian Pearson is quoted saying “The Government is keen to ensure a sucessful resolution to this matter.”  That, and a quote from Mr. Brown in the previously mentioned article, “It is important to recognise that throughout this whole crisis, everyone who
has been saving in a UK institution has been protected,” seem to give hope of Government help for the Mutual Society.  However, both articles note that at the present time it is only discussion and no action.