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.
Lloyds Bank raises £800 million in share placing
In a move which smacks of opportunism it has been revealed that Lloyds Bank has placed around 284 million new shares with institutional investors raising an impressive £800 million in just 3 hours. However, the group has been stung by suggestions that the sudden bounce in banking shares last week has given the group a very small window in which to raise the funds with the long term scenario in t...Read More
Can You Afford To Save?
While the banks and building societies are still desperate to gain access to funds to lend to customers there are some interesting savings options on the market. However, many of those with attractive interest rates will require consumers to tie-up their capital for a predetermined length of time. This has prompted many to ask whether they can actually afford to save, as strange as that may soun...Read More
Citigroup on the verge of selling Egg
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 potent...Read More
UK savers set for full refund from Icelandic account
In a move which was welcome as it is unexpected it has been revealed that UK savers are likely to receive a full refund on the funds held through Icesave, the online division of Landsbanki, the Icelandic bank which went under.
The compensation scheme has been arranged by the FSA in the UK and in conjunction with the Newcastle Building Society it looks as though UK savers will be com...
Is free banking under threat again?
As the UK banking arena moves out of recession and back into a growth phase there are growing concerns that so called "free banking" is again under threat. While in reality there is no such thing as "free banking" in the UK or anywhere around the world, whether this takes in direct charges or indirect charges, we are starting to see an increase in service charges and banking fees. A number of a...Read More