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.
Nationwide protests over FSCS bill
The Nationwide building society has issued a stark warning to the Financial Services Authority with regards to the £250 million bill the society has been hit with for its share of the Financial Services Compensation Scheme. The scheme is being put together to ensure that deposits up to £50,000 are guaranteed thereby giving some more backbone to the UK banking system. However, the Nationwide buil...Read More
Are you making use of your online banking facilities?
As more and more of us look towards the Internet for our everyday needs it appears there are still many people who are reluctant to use the Internet for their financial affairs. While we periodically hear about various scandals and frauds on the Internet, it is easy to forget that these types of criminal activity have been commonplace off-line for many many years. However, it appears that the Inte...Read More
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
Alistair Darling asks investment banks to plan for doomsday scenario
In a bizarre exercise it is believed Alistair Darling has requested that all UK investment companies should be made to plan for their future demise. This is on the back of the Lehman Bros collapse which caused significant problems in a number of investment markets with over 1.5 million positions left open. The idea is that UK banks will be asked to draw up plans in the event of their demise which...Read More
High street banks see tough competition for current accounts
22/04/2015 Competition in the current account market is picking up as major banks come under pressure to offer perks and rewards. HSBC, Barclays, Lloyds Banking Group and RBS have so far dominated the current account market, holding 75% of all accounts. Since the seven day switch guarantee was introduced in September 2013, some smaller firms have widened their elements of competition, offeri...Read More