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 Hits Student With £800 Charges For 8p Overdraft!
It seems as though Lloyds Bank cannot keep out of the headlines at the moment, but for all of the wrong reason!
Today sees a claim that the bank has been chasing a student who went 8p overdrawn, charging her £300 in fees to date with a further £500 still to be cleared. The saga began when Laura Gibson made a purchase of around £60 forgetting that this would take her slightly int...
Rising Bank Penalties causes concern over Consumer Awareness
Customers of banks within the UK have seen a sharp rise in the amount they are paying out in penalties for accidental mistakes. The total figure over the past 12 months has risen to £650m paid in penalties, according to research conducted by finance management service, OnTrees. Almost two million consumers have incurred fees ‘accidentally’, by making late payments or using an unauthorised...Read More
Gordon Brown faces grilling by senior MPs
The timing of Sir James Crosby's departure could not have been worse with Gordon Brown set to meet with the chairman of various House of Commons committees in his twice annual grilling. The subject of Sir James Crosby and the whistleblower from HBOS is splashed across the financial press today and is sure to be the focal point of what could be a very stormy debate.
During his time a...
Is it sensible to split the UK banking sector?
For many years the strength of the UK financial sector has been the very small number of large banking institutions which had very strong balance sheets and access to massive amounts of capital from the money markets. However, the UK government and the Bank of England would now appear to be looking towards a break-up of the likes of Lloyds bank, Royal Bank of Scotland and Northern Rock in order to...Read More
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