Santander confirms Royal Bank of Scotland branch offer
Spanish giant Santander has today confirmed a potential £1.8 billion for the 318 Royal Bank of Scotland branches which are up for auction. It is believed that Santander is the only firm bidder for the branches despite the fact that a number of parties came forward when the auction process began. The branches are being sold because of an EU ruling in relation to state aid for Royal Bank of Scotland when the company was on the verge of collapse.
Santander has been picking up UK assets for some time now having bought Abbey, Alliance & Leicester and the savings arm of Bradford & Bingley. If the Royal Bank of Scotland offer is successful, as seems likely, the company will have a 14% share of the UK mortgage market and 10% share of the retail savings market. In many ways Santander has been ahead of the game having changed a number of well-known UK brands to the "Santander" brand thereby escaping some of the growing consumer disdain aimed at the UK banking arena.
Many people expect further consolidation in the UK banking sector with the potential for retail banking and investment banking arms to be separated at companies such as Barclays bank.
Is George Osborne about to hit the UK banking industry?
Many believe that George Osborne will use his Mansion House speech this evening to launch a number of new initiatives aimed at the UK banking arena. He will warn them that they need to pay for the damage which "they inflicted" on the UK economy and indeed there will be talk of new banking taxes and a banking levy discussed. It is also believed that many Liberal Democrat politicians are pushing...Read More
Skipton building society set to acquire rival Scarborough
Yorkshire-based Skipton building society is set to acquire local rival Scarborough building society in a move which will take Skipton into the top five building societies in the UK. The merged operation will have nearly 900,000 members and assets approaching £16 billion ensuring that both operations have a long-term future.
This is just the latest in a long line of building society...
RBS to close 44 branches
The Royal bank of Scotland is set to close 44 UK branches, with 14 of those being classed as the “last banks in town.” The closures have been announced despite the bank making a pledge in 2010 not to close its branches.
However, an RBS spokeswoman stated “the world has changed since then,” citing a 30% fall in branch transactions since the pledge was originally made.
Move against building societies grows with news of payoffs
For many years the building society sector has been seen to be the consumer's friend and a lot less aggressive than the leading UK banks. However, after the events of the last 7 days, which saw the Nationwide Building Society step in to rescue the Derbyshire and Cheshire building societies from collapse, the mood is starting to changes.
Apart from the matter of many investors havin...
Bradford And Bingley Announces New Bond Yielding Around 7%
Even though the Bank of England has decided to keep interest rates at 5% for the moment, Bradford and Bingley has announced the launch of a new bond this week which will give investors around 7% gross. The bonds are available over 1 year, 2 year and 3 year durations and are currently the best on offer in the marketplace.
The minimum investment for these bonds is £1,000 and the max...