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.
BoE proposes additional protection for consumers
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Are your building society savings safe?
Today's report from Moody's and the subsequent reduction in debt ratings has caused major concern among those with investments and savings in the UK building society sector. While the Building Societies Association has come out in of support the sector as a whole, suggesting that the report from Moody's is "over pessimistic", the fact that the red pen has been taken to the sector as a whole is wor...Read More
Is the UK government about to be embarrassed over the Icelandic affair?
Amid claims that the government were aware of problems in Iceland prior to the collapse of the country's financial sector there are growing calls for a thorough investigation into the collapse where confirmation about what the government did and did not know would be requested. As we discussed yesterday there are claims that Gordon Brown knew about problems as far back as March 2008 although no ac...Read More
OFT probes 'free' banking
The Office of Fair Trading (OFT) has launched an investigation into concerns that banks may be unfairly imposing charges upon their customers.Along with a market study into current account pricing, the watchdog has launched a formal investigation into charges on unauthorised overdraft use and for returned items.It warns that 'free' banking may be coming to an end and fears that any rash, suddenly-...Read More
Barclays Bank customers hit by computer problem
A number of Barclays Bank customers were unable to withdraw money yesterday after a power outage caused the company's LINK ATM service to go down for a 20 minute period. This comes only days after the company announced a deal to outsource handling of its ATMs to NRC Corporation although the company furiously denies claims that the "outage" is in any way connected to the outsourcing deal. A numb...Read More