London Scottish Bank Sinks into Administration
Dec 01, 2008 | Comments 0
London Scottish Bank sank into administration today after regulators put a stop to the bank taking customer deposits. Ernst & Young have been appointed as administrators for the lender which specialized in customers which had poor credit history.
LSB has around 700 employees and has approximately 10,000 savers and hold around £250 million in customer deposits.
London Scottish Bank revealed that it lost £7.4 million in the six months to April 2008. Even if customers at LSB savings exceeded the Financial Services Compensation Scheme limit of £50,000 the government had promised that no saver will lose their money.
The Treasury said in a statement that arrangements are in place to protect all eligible retail depositors in LSB to their money in full.
Shares in London Scottish bank almost lost all their value in the last year. Today the shares were suspended at 2.62p.
Source: Timesonline
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