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.
Sir Fred Goodwin's former deputy returns to RBS
Gordon Pell, the former deputy to Sir Fred Goodwin at Royal Bank of Scotland, has today returned to the group after being appointed deputy chairman of the Coutts banking subsidiary. This comes despite the fact that he left Royal Bank of Scotland with a £580,000 pension after the clearout at the top of the management chain at RBS. It is believed that Gordon Pell will receive a salary in the reg...Read More
UK government refuse to guarantee savings
There was a very poignant moment in today's press conference when Gordon Brown was pushed on whether or not he would follow the lead of other countries across Europe and guarantee the total savings of the UK public. In true political fashion he avoided the question instead deciding to confirm that the UK government has always looked after savers where their banks have hit trouble.
Mobile phone payments enjoy successful London trial
Londoners could soon be able to make payments with a swipe of their mobile phone, following the success of a trial from Nokia and network providers O2.The Finnish mobile phone firm provided 500 city residents with a handset adapted with both Barclaycard and Oyster card technology.Contactless payments were then made through the devices for tube trips and small purchases from retailers including Yo!...Read More
Is the Post Office bank starting to fall apart?
As the UK government today announced news of a significant investment into the UK Post Office network, which will result in banking services becoming available up and down the country, these very ambitious plans are already under attack. In a bitter blow to the UK government it has been revealed that a joint-venture with Bank of Ireland will see the Post Office hand over 50% of all banking profits...Read More
Virgin Money in rumoured bank expansion
Richard Branson is rumoured to be on the lookout for "a small UK bank" which he can bring into his Virgin Money operation and expand his banking services. The company has confirmed it is exploring "a number of strategic options" although the strongest rumours in the market currently relate to Virgin Money acquiring the "good bank" of Northern Rock. Those who have followed the story will be well...Read More