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.
Will the overdraft fee saga mean the end of free banking?
Over the last 48 hours it has emerged that the UK Supreme Court will this week rule on the eligibility of the Office of Fair Trading to clarify whether banks have overcharged customers with regards to their overdrafts and certain fees. This is a vital element of the ongoing overdraft fee saga and there is a feeling that if the UK Supreme Court rules in favour of the Office of Fair Trading (OFT) th...Read More
Alistair Darling to meet City bankers in Davos
Alistair Darling will meet an elite band of City bankers in Davos on Friday amid concerns that the UK government, and the US government, are hitting the financial sector too hard and will hold back a recovery in the worldwide economy. The UK government's windfall tax, a call for a new Tobin tax and the US government's banking tax levy has certainly caused concern within the financial markets and i...Read More
Little-known Scottish Bank receives massive investment injection
The Airdrie Savings Bank may well have been around for 175 years but it is a relatively small operation based in the county of Lanarkshire. However, this is a bank which may well hit the headlines in the weeks and months ahead after a group of Scottish entrepreneurs gave their backing to the operation by depositing a total of £10 million with the Bank. They will not take any shares in operation i...Read More
Barclays Bank feels the Lehman Brothers backlash
While initial rumours of a Barclays Bank led bailout of US giant Lehman Brothers did not hold much sway with traders, the mood suddenly turned a little sour when it was confirmed that the group was in talks with the US giant about a takeover. While the deal was scuppered when the US authorities refused to offer any financial guarantees in the event of more shocks with the balance sheet many trade...Read More
Could Lloyds bank withstand a 1980s style recession?
As the UK government looks ready to give the green light for a rescue package for Lloyds Bank many people are wondering whether the company is strong enough to withstand a 1980s style recession. Commonly known as the "U" shaped recession this is the worst type of economic slowdown which bottoms out and bounces along the bottom for some time before recovering. Businesses struggle, unemployment goes...Read More