Tesco linked to early sale of Northern Rock

Rochdale_Pioneers

cogito wrote: »

And he said that where, precisely?

When he criticises the idea that the taxpayer gets left with the toxic waste. Thats going to happen no matter which government sells it to whomever. I have to assume therefore that he supports never selling it.

Thrugelmir

Rochdale_Pioneers wrote: »

When he criticises the idea that the taxpayer gets left with the toxic waste. Thats going to happen no matter which government sells it to whomever. I have to assume therefore that he supports never selling it.

The Treasury probably has plans to merge together the remaing NR, B&B and A&L debt and sell if off as a package.

1echidna

Companies which go into new areas they don't understand usually come a cropper. Expect this will happen to Tesco.

Thrugelmir

1echidna wrote: »

Companies which go into new areas they don't understand usually come a cropper. Expect this will happen to Tesco.

They've been planning this for a while. They've been in personal financial services for years. Buying NR gives them a leg up so to speak.

The NR branches will be converted to Tesco's Bank.

Tesco's love or hate them is run by a world class management team. You only have to look at their overseas expansion to see how they got local markets right. Not an easy task.

We need to back British Companies in these difficult times. Santander are asset stripping the banks they bought and wont invest anything back into the UK economy.

1echidna

Thrugelmir wrote: »

They've been planning this for a while. They've been in personal financial services for years. Buying NR gives them a leg up so to speak.

The NR branches will be converted to Tesco's Bank.

Tesco's love or hate them is run by a world class management team. You only have to look at their overseas expansion to see how they got local markets right. Not an easy task.

We need to back British Companies in these difficult times. Santander are asset stripping the banks they bought and wont invest anything back into the UK economy.

Tesco are good at running supermarkets in the British environment. I wouldn't be so sure that they have cracked overseas markets. Their board and senior executives will continue to concentrate on the core activities and like many companies before them will find diversification problematic. They have had a good run but if the going gets difficult the core activities where their expertise lies will be preserved and the finance side sold off.

Thrugelmir

1echidna wrote: »

Tesco are good at running supermarkets in the British environment. I wouldn't be so sure that they have cracked overseas markets. Their board and senior executives will continue to concentrate on the core activities and like many companies before them will find diversification problematic. They have had a good run but if the going gets difficult the core activities where their expertise lies will be preserved and the finance side sold off.

Didn't do too badly last financial year.

TESCO'S banking operation reported profits of £244 million last year as it cashed in on the flight of consumers from established banking brands during the financial crisis.

http://news.scotsman.com/supermarkets/Tesco-banks-on-financial-service.5191658.jp

Maybe fresh blood will focus established bankers minds.

kennyboy66_2

Thrugelmir wrote: »

They've been planning this for a while. They've been in personal financial services for years. Buying NR gives them a leg up so to speak.

The NR branches will be converted to Tesco's Bank.

Tesco's love or hate them is run by a world class management team. You only have to look at their overseas expansion to see how they got local markets right. Not an easy task.

We need to back British Companies in these difficult times. Santander are asset stripping the banks they bought and wont invest anything back into the UK economy.

Doesn't the idea of Tesco's (or Nestle or Walmart) getting involved in banking and mortgages sound a little like "fantasy dreaming".

http://forums.moneysavingexpert.com/showthread.html?t=1777865&highlight=fantasy+dreaming&page=4

Rochdale_Pioneers

Tesco IS a bank - and thats Tesco the retail division not Tesco Finance. They buy products off suppliers, sell them in around 10 days, and for the remaining 20 - 50 days before they have to pay the supplier the money sits in the bank earning interest. And with their turnover thats a lot of money earning a lot of interest.

Them diversifying into retail banking - loaning out that supplier money to make even bigger return - was a natural next step. If Tesco bought NR then they'd make it a success as they have all of their other businesses. Why the opposition - the brand not being a traditional bank? Rather that than a traditional brand thats now a synonym for failure and taxpayer-funded insolvency.

halight

Id be suport of tesco buying NR,
I also think that thay would make a go of it too.
I dont think it would be a good idear to name accounts after there food range eg tesco value.
Im a share hold in tesco and if i had the chance to vote for them to buy NR (without the bad debt) then id vote yes.

Jonbvn

I can only hope that they improve on the TESCO online saver product, which was (is?) a complete nightmare to open and operate. It requires a card reader, which was never even mentioned in the application.

I hope it lasts longer than their EA business!