MUTUAL STATUS

That this House recognises the disastrous consequences of the greedy rush to demutualise building societies, which resulted in excessive risk taking, lax lending and a pay bonanza for top executives, as well as increasing reliance on markets for funding and on buying and selling bundled debt obligations which eventually became unsaleable; congratulates those building societies wise enough to retain their mutual status; and suggests that it would now be iniquitous to levy them to contribute in any way to help pay off the debts run up by the irresponsibility of those who led the rush to demutualise; and points out that instead the virtues of mutualisation should be commended as the best means of inducing a sense of responsibility and encouraging customer involvement.