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LLoyd's branch sale collapses
grizzly1911
Posts: 9,965 Forumite
The planned sale of 632 UK bank branches by Lloyds Banking Group to the Co-op group has fallen through.
The Co-op blamed the continued economic downturn and tougher regulatory environment imposed on banks.
http://www.bbc.co.uk/news/business-22276082
Peston also suggesting that Co-op may well withdraw from banking completely for the same reasons.
The Co-op blamed the continued economic downturn and tougher regulatory environment imposed on banks.
http://www.bbc.co.uk/news/business-22276082
Peston also suggesting that Co-op may well withdraw from banking completely for the same reasons.
"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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Most important, however, is how the Co-op's withdrawal from the Lloyds deal highlights the tension between the government's twin ambitions - of making banks safer through increased and improved regulation and promoting competition.
The Co-op apparently took the view that it could not adequately cover the costs of the increased regulatory burden on banks, even when enlarged by the Lloyds deal, in the UK's worsened economic climate.
And here is perhaps the most telling fact. The Co-op was buying a bank from Lloyds that is far better capitalised than its existing bank, so it would actually have been strengthened, in a prudential sense, by buying the 632 TSB branches and £25bn of deposits.
But even with that huge incentive, it could not persuade itself that pressing on with the acquisition made commercial sense (and this from a co-operative, whose profit motive is less acute than most PLCs)
Pendulum has obviously swung too far towards increased regulation/costs.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
It is suggested that the LLoyds branches involved will now be rebranded as TSB and then shares sold in the new company.
Is this likely to attract a rush of new investors?"When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson0 -
MacMickster wrote: »It is suggested that the LLoyds branches involved will now be rebranded as TSB and then shares sold in the new company.
Is this likely to attract a rush of new investors?
Haven't we already paid for them once?
I've still got some form the last time round.
Next they will be trying to sell us bomb and explosive detectors that can now find money at the end of the rainbow. Just need to obtain the correct "coding card" to go with them, given away in lucky chocolate bars wrappers."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Haven't we already paid for them once?
I've still got some form the last time round.
But there were some free ones being handed out last time weren't they? Some sort of BOGOF.
I suspect that I know how investors will react this time.
"When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson0 -
This is going to be a PITA for me whatever. Three different lloyds accounts (current, savings, joint) and from what i understand one of them will be hived off to a new bank.0
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one assumes that the co-op has been technically insolvent for sometime
been meaning to move the wife's 50 quid from there0 -
noodle_doodle wrote: »This is going to be a PITA for me whatever. Three different lloyds accounts (current, savings, joint) and from what i understand one of them will be hived off to a new bank.
See, this is the farce that all of this is.
Natwest did the same with my business account. They sold out to Santander, so for around a year we were being told we'd be moved, what stage it was at etc.
I had to open another business account entirely as there is no Santander branch near myself. So opened up an account with another bank, changed all my business banking, go in touch with all customers etc.
Only then do Natwest turn around and say "it's fallen through, carry on as you were".
It's all a farce.0 -
MacMickster wrote: »It is suggested that the LLoyds branches involved will now be rebranded as TSB and then shares sold in the new company...
My understanding is that was always the plan; rebrand the 632 branches as TSB, then sell the TSB to the Co-op.Graham_Devon wrote: »See, this is the farce that all of this is...
Years ago, the Woolwich Building Society bought the Town and Country Building Society. Some years later, some bright spark at the Woolwich thought it would be a good idea to find out how many former Town and Country Building Society customers they'd managed to hang on to. And the answer was (to all intents and purposes) none whatsoever. That's the problem with customers, they do tend to make up their own minds about things.
I wonder if there is some bright spark at the Co-op whose asked the same question about Britannia customers and got a similar answer?0 -
grizzly1911 wrote: »...The Co-op blamed the continued economic downturn and tougher regulatory environment imposed on banks......
But not that it made a loss last year?
http://www.retailbankerinternational.com/news/co-op-bank-reports-weak-2012-verde-suffers-fresh-doubts/0 -
My understanding is that was always the plan; rebrand the 632 branches as TSB, then sell the TSB to the Co-op.
Your understanding is correct. I'm guessing they'll float it, unless NBNK get interested again?
As I recall the coop deal wasn't a great one for shareholders, so I'd suggest this is potentially good news for all of us.“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0
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