Santander and RBS haunted by ghost of financial crisis | Business | The Guardian
The boss of one of the UK's biggest banks has been named in Parliament as being responsible for RBS's scandal-hit Global Restructuring. Royal Bank of Scotland agrees a deal to sell of its branches to Spanish banking group Santander for a premium of £m. Royal Bank of Scotland spends £1bn on legal battle and Spanish lender rescues rival as legacy of hangs over sector.
Royal Bank of Scotland Group - Wikipedia
Byeconomic conditions were becoming more difficult for the banking sector. InLloyds Bankwhich had previously built up a The offer was rejected by the board of directors on the basis that it was detrimental to the bank's operations. However, when the Standard Chartered Bank proposed a merger with the Royal Bank inthe board responded favourably.
Standard Chartered Bank was headquartered in London, although most of its operations were in the Far East, and the Royal Bank saw advantages in creating a truly international banking group.
Approval was received from the Bank of Englandand the two banks agreed a merger plan that would have seen the Standard Chartered acquire the Royal Bank and keep the UK operations based in Edinburgh. However the British government referred both bids to the Monopolies and Mergers Commission ; both were subsequently rejected as being against the public interest.
Since then, Citizens has acquired several other American banks and in acquired Charter One Bank. The Bank of Scotland intended to fund the deal by selling off many of the NatWest's subsidiary companies, including Ulster Bank and Coutts. However, the Royal Bank of Scotland subsequently tabled a counter-offer, sparking off the largest hostile takeover battle in UK corporate history. NatWest as a distinct banking brand was retained, although many back office functions of the bank were merged with the Royal Bank's leading to over 18, job losses throughout the UK.Santander, NAB Said to Consider Bids for RBSs Branches
This was, at the time, the largest rights issue in British corporate history. The aim was to "make available new tier 1 capital to UK banks and building societies to strengthen their resources permitting them to restructure their finances, while maintaining their support for the real economy, through the recapitalisation scheme which has been made available to eligible institutions".
The government stressed, however, that it was not "standard public ownership" and that the banks would return to private investors "at the right time".
The bank's origins date back to with the foundation of Smith's Bank of Nottingham. Duncan Stirling, outgoing chairman of Westminster Bank, became first chairman of the fifth largest bank in the world.
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The same banks, excluding Lloyds, were later responsible for the introduction of the Switch debit card later branded Maestro in Deregulation in the s, culminating in the Big Bang inalso encouraged the bank to enter the securities business. County Bank, its merchant banking subsidiary formed inacquired various stockbroking and jobbing firms to create the investment banking arm County NatWest.
National Westminster Home Loans was established in and other initiatives included the launch of the Piggy Account for children inthe Credit Zone, a flexible overdraft facility on which customers only pay interest now commonplace, this so-called pink debt was innovative when launched and the development of the Mondex electronic purse later sold to MasterCard Worldwide in Under the direction of Robin Leigh-Pembertonlater Lord Kingsdown, who became chairman inthe bank also expanded internationally, forming National Westminster Bancorp in the United States of America with a network of branches across two states, National Westminster Bank of Canada and NatWest Australia Bank; and opening branches on the European continent and in the Far East.
Completed inthe bank built the National Westminster Tower now known as Tower 42 in London to serve as its international headquarters.
RBS sells branches to Santander - BBC News
At a height of feet m it was the tallest building in the UK until the topping-out of Canary Wharf Tower 10 years later;  its footprint loosely approximating the bank's logo when viewed from the air,  although the architect claimed the similarity was coincidence. Controversy[ edit ] The bank's expansion strategy hit trouble with the stock market crash of and involvement in the financial scandal surrounding the collapse of Blue Arrow.
The Department of Trade and Industry report on the affair was critical of the bank's management and resulted in the resignation of several members of the board, including then chairman Lord Boardman.