Building Society chiefs under fire

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The Independent Online
Directors of West Bromwich Building Society were criticised committee of MPs yesterday who are looking into the way it sold certain mortgages to old people in the late eighties. The Labour MP Brian Sedgemore produced a leaked copy of an early draft of a regulator's investigation claiming: "It is saying here the West Bromwich is a corrupt building society ... which issued a false prospectus."

He accused directors of turning a blind eye to close liaison between building society employees, a firm of financial advisers and a firm of solicitors. Mr John Baker, West Bromwich's chairman, denied the claim and said the society had fully compensated all who had received poor advice.