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.
Banks launch new campaign against fraud
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UK government seizes £4 billion of Icelandic assets in UK
In a move which has been welcomed in the UK but may well backfire in the overseas political scene it has been confirmed that the UK government has seized £4 billion of Icelandic assets held in the UK. The £4 billion figure is in excess of the £3 billion which is said to be owed to UK investors by Iceland's financial system. So what next?
While initially the Icelandic government...
Consumers losing £200 per year in interest
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Will UK taxpayers lose out if UK banks are split?
Despite the fact that the UK government believes that splitting UK banks will help introduce more competition into the sector there is a feeling that taxpayers could lose out on their direct investments in the likes of Lloyds bank, Royal Bank of Scotland and Northern Rock. It is believed that Royal Bank of Scotland alone could possibly lose around £2 billion a year in profits simply by spinning o...Read More
RBS to close 44 branches
The Royal bank of Scotland is set to close 44 UK branches, with 14 of those being classed as the “last banks in town.” The closures have been announced despite the bank making a pledge in 2010 not to close its branches.
However, an RBS spokeswoman stated “the world has changed since then,” citing a 30% fall in branch transactions since the pledge was originally made.