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.
Wilbur Ross sees Virgin Money on the UK high street
Richard Branson has today announced a new high-profile partner for his Virgin Money operation with US billionaire Wilbur Ross injecting £100 million for a 20% stake in the operation. The US investment guru has also promised to invest a further £500 million into a potential offer for Royal Bank of Scotland branches. This is a major landmark in the history of Virgin Money and indeed puts Richar...Read More
Royal Bank of Scotland customers in dilemma
As Santander gets ready to bring on board up to 2 million new customers from the takeover of the Royal Bank of Scotland and NatWest high street banking outlets the BBC has reported that Royal Bank of Scotland customers can still remain with the bank if they so wish. Under the terms of the Santander takeover of the various banking outlets, Royal Bank of Scotland is not able to encourage customers t...Read More
Why is the UK financial system under yet more pressure?
While the UK government has poured billions upon billions of pounds into the UK banking system it would appear that the UK building society sector, for years a rock solid foundation of the UK economy, is potentially on the verge of serious financial trouble. While we have seen a number of rescue bids in the past and the collapse of the Dunfermline building society, many believed these were instanc...Read More
Barclays Bank system crashes
A technical fault at Barclays has caused significant problems for the bank's customers today leaving many unable to access their funds. Internet banking, telephone banking and a whole variety of cash machines were "down" this afternoon due to a hardware failure. While the situation has been resolved and the system is now fully functional many people were left stranded in shops unable to use their...Read More
Building societies struggling to keep pace with UK banks
The building society movement is starting to feel the pain of the UK recession as base rates fall to record lows and many building society savers are looking elsewhere to invest their money. Even though there has been a change in funding options for the UK building society sector, individual building society still very much depend upon savers deposits to fund their mortgage, loan and other busines...Read More