Santander set to grab 318 Royal Bank of Scotland branches
The inside word appears to suggest that Santander, the Spanish banking giant, is on the verge of acquiring 318 Royal Bank of Scotland branches put up for sale by the company. Despite earlier rumours that the company had bid of around £1.8 billion it seems that the final asking price will be around £1.65 billion with Santander the only bidder left at the table. However, it looks as though the deal may well take up to 18 months to complete!
Under strict UK and European banking regulations it is likely to take up to 18 months for the acquisition to be finalised and the transfer of the branches completed. This does seem rather bizarre when you consider that the European Union forced Royal Bank of Scotland to put these branches of the sale due to the fact the company had received significant state aid from the UK authorities. It will be interesting to see any comments from the competition authorities but ultimately with Santander the only bidder at the table the deal should effectively flow-through.
The sale of the branches will mean a massive difference to the future makeup of Royal Bank of Scotland which has paid a price for significant risks taken in the past. The Royal Bank of Scotland we see today will be very different to the Royal Bank of Scotland we will see in 18 months time.
Confusion and disagreement on UK bank split
Despite the fact that the UK government and the Bank of England appear in favour of spitting UK banks into smaller more competitive components, Lord Adair Turner, the chairman of the Financial Services Authority (FSA), has today issued his opinion on the subject. He believes that by detaching the more stable elements of the UK banking sector from the "Casino institutions" we could well be injectin...Read More
42 million Brits have no idea about ID theft
According to Capital One, 42 million people in the UK have no idea how they can check if their identity has been stolen, while just one in ten knows what procedure to follow if they suspect they have been a victim of ID theft.Even though 41 per cent of people admit they are afraid that their identity could be stolen, millions of people put themselves at risk through their own actions.Some16 millio...Read More
Strapped students scrounge for freebies
The British Bankers Association (BBA) has said it is concerned that students looking to open a new bank account may be tempted by freebie offers when the overall service may not be suitable for them.As September sees the next generation of students entering universities, the BBA has said that students should be more cautious before being tempted to open an unsuitable account on the basis of free o...Read More
Lloyds Bank to withdrawal interest payments on business current accounts
In a move which is sure to upset the UK business arena, Lloyds Bank has announced plans to withdraw interest payments on business current accounts, which is currently the norm at Bank of Scotland. While in reality Bank of Scotland business accounts have received zero interest for some time, due to the fact that the rate is set at two percentage points below base rates, businesses will miss out on...Read More
Simple mistakes which are handing money to the banking industry
In these times of economic concerns it is vital that the UK public review their banking arrangements on a regular basis and ensure they are getting value for money and services which they actually require. While there are a number of common errors which increase the overall cost of UK banking services, we would like to highlight the following issues: -