(Source: Tulsa World)
LONDON (AP) -- The Royal Bank of Scotland, Northern Rock, and
Lloyds Banking Group are to sell off as many as 700 branches in the
next few years in exchange for the public aid they received during
the economic meltdown, a government official told The Associated
Press on Saturday.
The official said that the banks were in negotiations with
Britain's treasury and European regulators over how many assets they
would have to give up in return for the tax money they received.
"Essentially, they are expected to have to divest -- each of them
-- some of their branches," he said.
As many as 700 branches could be sold off, the official said.
The branches would be reserved for new entrants to the British
banking market, creating three new banks over the next five years or
so.
Established players such as Barclays PLC or the Spanish Banco
Santander S.A., which owns three U.K. businesses, would not be
allowed to bid for the businesses.
The official warned that the figures were subject to change.
He spoke on condition of anonymity because the moves had yet to
be completed.
The shake-up would come after Britain pumped billions of pounds
into its banking sector in an effort to stave off the collapse of
its financial system in the wake of the credit crunch.
Northern Rock PLC was nationalized early last year after it
struggled to raise funds from crunch-hit wholesale lending markets.
The government has significant stakes in both the Royal Bank of
Scotland Group PLC and the Lloyds Banking Group PLC. SUBHEAD:
The banks involved were recipients of government assistance.
(c) 2009 Tulsa World. Provided by ProQuest LLC. All rights Reserved.
A service of YellowBrix, Inc.
