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.
Donald Moffat receives £100 billion overdraft bill from Barclays!
When 38-year-old Donald Moffat logged onto his Barclays bank account yesterday morning expecting to see his account in the black he was astonished to say the least when he encountered a £100 billion deficit on his current account!
While the UK economy and savings rates may be under pressure the Scottish student was shocked when he realised he had apparently spent enough money to ba...
Commons investigation into banking competition
The renowned Commons Treasury Select Committee will today begin an investigation into the UK banking sector with particular emphasis on the high street lenders and the lack of competition in this area. When you consider that the likes of Lloyds bank control about one third of this market with Santander, the Spanish giant, also controlling a significant portion, it is perhaps no surprise that the a...Read More
Are The Banks Trying To Confuse You?
It seems that last weeks announcement of a reduction in overdraft charges by Barclays Bank may not be quite as straight forward as it seems. While the reduction in overdraft charges is going ahead, and has been well received by customers, it seems that Barclays may actually be using these changes to slip in a number of new accounts – all of which carry charges.
Building societies look to fill compensation gap
It has been revealed that 6 out of 10 building societies in the UK feel they will need to increase their mortgage rates and reduce savings rates to fill the gap left by their contribution to the financial services compensation scheme. This is a scheme set up by the financial regulators to ensure there is sufficient capital to compensate customers of failed UK banks although one which many feel has...Read More
HBOS reduces overdraft fee to just five pounds a day
As we covered in one of our earlier post, more and more banks in the UK are reducing their overdraft charges as we await the announcement of a legal challenge to historic overdraft fees. HBOS, via its subsidiary Halifax, is the latest such bank to reduce its charge to just five pounds a day for those making use of unauthorised overdrafts.
Previously Halifax had charge £35 for refu...