Online financial operation Egg is rumoured to be up for sale with US giant Citigroup recently announcing the potential disposal of all non-core assets. Egg has come to epitomise the Internet arena and the impact this had upon the financial industry. The operation was acquired from the Prudential in January 2007 with a price tag of £575 million. So what can Citigroup expect to raise with a potential sale of Egg?
The Financial Services Authority (FSA) has today confirmed that Royal Bank Scotland has been hit with a £5.6 million fine with regards to a failure to comply with FSA regulations. It is believed that internal monitoring of funds transferred from Royal Bank of Scotland fell below acceptable levels in 2008 with the potential for funding to reach organisations or people facing Treasury sanctions.
While you could argue that the likes of Royal Bank of Scotland, Northern Rock and Lloyds Bank are effectively state-controlled at this moment in time, although they will be sold off in due close, an interesting discussion is formulating in the investment arena. With the mainstream UK banks unwilling at this moment in time to increase liquidity, especially for the small business arena, is there a gap in the market for a long-term state-controlled bank?
Santander, the Spanish financial giant which owns the likes of Abbey, Alliance and Leicester and parts of the former Bradford and Bingley operation, is rumoured to be on the verge of signing a deal to acquire 300 branches from Royal Bank of Scotland. In effect the deal has been signed sealed and delivered for some time because Santander was the only real serious bidder left at the table but it is expected to confirm the deal either tomorrow or Wednesday.
Yorkshire Building Society this week announced a major turnaround in the group's fortunes storming back to a profit of £65.4 million for the first half of 2010 against a loss of £22.3 million for the same period last year. While the company has benefited from the recent merger with the Chelsea Building Society there is no doubt that action taken in 2009 has given the society a strong base for future and the potential to continue on a relatively steep growth path.
In a surprise move it has been revealed that the Nationwide is set to scrap the current 1% currency conversion charge on overseas Nationwide debit card transactions in favour of a 2% charge on all overseas transactions and a £1 withdrawal fee. However, the situation is slightly different for those holding Nationwide credit cards as the current 1% overseas charge will be retained for transactions within the EU and outside of the EU. However, there is also some good news!
Whether or not the top 5 banks in the UK announce cumulative profits of over £8 billion for the first 6 months of 2010 is irrelevant really, but how is the UK banking sector apparently thriving while the rest of the UK struggles to make ends meet?
Earlier this week we saw the introduction of Metro Bank into the UK with a very different approach to high Street banking, akin to the retail world, working hours and simplification of the current banking set up in the UK. The company has promised that customers will be able to set up a new account, apply for new services and make use of their various facilities in no more than 15 minutes. When was the last time you were able to open a bank account within 15 minutes!
The first truly new retail bank in the UK opened its doors yesterday when US billionaire Vernon Hill launched his vision for the future of UK banking in the shape of Metro Bank. The company will offer retail hours, "unparalleled service" and a range of products which the company believes will be suitable for everybody in the UK. However, it is the pledge that it will take only 15 minutes for customers to open new accounts which has caught the eye of many people.
Santander, the Spanish financial conglomerate, has today issued a statement confirming the creation of 600 jobs in its UK division with plans afoot to significantly grow the UK operation. This comes only hours after the company confirmed it was in final talks to acquire the 300+ Royal Bank of Scotland branches which the company was forced to put up for sale by the European Union.
