R2OK!

Angela W · Joined: 11 Dec 2006 Posts: 7228 Location: North Yorkshire

Didn't we have one, wasn't it the Girobank and didn't it get sold to Alliance and Leicester?
_________________
Pirate Johnnie Walker played my request on 11 April 2009

RockitRon · Joined: 07 Dec 2006 Posts: 7646

We did, it was, and it did.

One of the Harold Wilson Government brainwaves. For many years it was about the only bank in the world allowed to make a loss.

It was in theory a good idea and its systems and mechanics ahead of its time, but it was hamstrung by its association in the public mind with "the Giro" (social security and unemployment benefit cheques), of not being a full member of the banks' clearing system, so businesses were reluctant to accept personal cheques because it took twice as long for them to clear, or bounce (they also only bounced once - there was no "second chance" to re-present), and of being tied to main Post Offices for a very basic service - the public weren't then ready for the fully centralised, telephone query system.

Eventually they persuaded the Alliance & Leicester to take it over.
_________________
Ron

Briant · Posted: Tue Mar 17, 2009 11:40 am Post subject: Girobank...

I was a postman in 1970 when the idea of the Girobank was first mooted. We had a vote and the staff agreed to pay our wages in each week to this bank. We were given accounts and cheque books. Lots of jobs were created in Bootle, a suburb of Liverpool as the clearing house for the business. It worked well for many years in my experience.
On the subject of Building Societies turning into banks, I was one of the 3% who voted against demutualisation of The Halifax Building Society by the 'Carpetbaggers.' Given the current state of banking, with people unable to buy a house, I think I was correct!

Angela W · Joined: 11 Dec 2006 Posts: 7228 Location: North Yorkshire

I thought so!

By the way, we were two of the 3% who voted against the 'Carpetbaggers'. Sadly something we had was converted into shares and now we have a huge loss on them.
_________________
Pirate Johnnie Walker played my request on 11 April 2009