Three new High Street Banks to be created

bjorn_again

Alistair Darling is set to announce the formation of three new High Street Banks.
In an effort to recoup the massive prop-up payments made last year from tax payers pockets. Three new Banks are to be created.

http://news.uk.msn.com/uk/article.aspx?cp-documentid=150547454

Interesting to note that these will almost certainly be under foreign ownership.

EarthBoy

bjorn_again wrote: »

Interesting to note that these will almost certainly be under foreign ownership.

More likely under Tesco or Virgin ownership.

nilrem_2

Are they really planning to split the profitable side of Northern Rock and then rename it to BankCo? What a poxy name sounds real dodgy IMHO, personally I feel it would be better to call the unprofitable offshoot as BankCo!

TBH I would prefer my money to be invested in NR owned by the state than one owned by Tesco or Virgin.

agsnu

nilrem wrote: »

Are they really planning to split the profitable side of Northern Rock and then rename it to BankCo? What a poxy name sounds real dodgy IMHO, personally I feel it would be better to call the unprofitable offshoot as BankCo!

"BankCo" is just a term being just in the documentation discussing the proposals. It's a placeholder name until the plans actually go ahead and a buyer is found. For example, this hypothetical "BankCo" might be bought by Virgin, and rebranded as Virgin Bank or something. From a customer's perspective, it would go from "Northern Rock" to being "Virgin Bank".

Did you know that the deposits held by Kaupthing Bank were actually transferred to a company called Frontpedal Limited, which was renamed Deposits Management (Edge), before being transferred to ING Direct N.V.?

nilrem wrote: »

TBH I would prefer my money to be invested in NR owned by the state than one owned by Tesco or Virgin.

That's part of the problem though, isn't it? NR currently have an uncompetitive advantage due to state aid, which is against EU regulations. If you want to invest money with the Government, NS&I is the normal and accepted avenue for doing so (unless of course you have billions, in which case you can always buy Treasury Gilts).

ed123_2

...or Northern Virgin Bank

KingL

All the network utilities (electricity, water, rail, etc) were named TransCo and ServCo whilst in the planning phase of their restructurings.

RayWolfe

ed123 wrote: »

...or Northern Virgin

No such thing!

ERICS_MUM

ed123 wrote: »

...or Northern Virgin Bank

.....Urban myth...

OneADay

Its the weekend so as normal for weekends, we get another saving the world Gordon announcement.

This time he wants to go back and undo what happened in 8-10 years ago (banks merging) and also what he himself did only last year (namely Lloylds / Halifax merging).

And to boot - he wants to sell it to a supermarket monopoly and another business which has its hands in all types of ventures from radio to airlines.

And as per normal the annoucements are made before being announcement properly to markets which will result in quick cheap sales all in vain attempt to save their own bacon.

amcluesent

> the annoucements are made before being announcement properly to markets which will result in quick cheap sales all in vain attempt to save their own bacon.<

Yep. Clown will rush this one through before 6th May, get 10p in the £ for taxpayers, trumpeting how 'prudent' he is and leave another poisoned chalice for the Tories.

EarthBoy

KingL wrote: »

All the network utilities (electricity, water, rail, etc) were named TransCo and ServCo whilst in the planning phase of their restructurings.

Not just in the planning stage; sometimes in the established business as well. The gas distribution network was called TransCo for years after the old British Gas was split up. It was later taken over by the National Grid and part of the network sold off to other companies.