Santander backs out of RBS deal

[KidKruger]

This is interesting because RBS were told to offload a bunch of their corporate and retail customers by the European banking authorities. But after 2 years trying to do so its not been possible.

So now what does Europeean authorities do !?

Not as if they can contour up another bank prepared to blow ?1.6bn.

What a waste of time.

[Huguenot]

I don't know about this situation, but I'm guessing that if the ECB instructed RBS to offload the customers, that's because otherwise they would not do so of their own volition.

Consequently RBS could retain the customers by over pricing them.

A large corporation paying lip service to regulation wouldn't surprise anyone, and the cost or time involved would be heavily justified.

[????]

yup,you certainly don't...that large corporation being the the UK governemnt (83%).

[silverfox]

Help me out here folks because I see this is big news on the BBC etc but I can't understand why.

1. My understanding was it was the British taxpayer that bailed out RBS. I don't remember any EU money or Troika involvement.

So, question 1 - what the hell does the EU have to do with it (telling RBS to sell off branches).

2. Santander was the suitor. I've read the merging of IT systems was too prohibitive/the delay unacceptable.

So, question 2 - What's the real story here? Santander is a Spanish bank. Spain hasn't got a pot to piss in.

2.

[LondonMix]

Santander is a global bank (the minority of its business is in Spain even though that's where its head quartered).

The European Commission required the sale to ensure market competition in small business banking which is entirely within its remit. The EC regulate market competition throughout the EU.

The question is whether RBS will now get a big fine by the EC for not complying with the sale mandate.

[KidKruger]

I'm surprised the share price only dropped a penny, given the difficulties RBS now faces.

As I understand it, RBS cannot entertain Virgin, JC Flowers, or any other potential buyer until the deal is legally closed, which is currently not the case.

[silverfox]

Sorry, have I missed the point?

How much EU money was spent to bail out RBS?

[Huguenot]

silverfox, one of the things that most people believe that the government should have done more of to prevent the current debilitating UK economic crisis is regulation.

The problem with regulation on a national level is that it can create either an unfair advantage or disadvantage at the international level leading to reckless behaviour - and the people that pay the price, as you have discovered, is the little man.

The UK adheres to international regulation because it makes sense, not because it's Johny Foreigner interfering.

[LondonMix]

Yes, you are missing the point. This has nothing to do with the RBS bailout. The EC regulates market competition in banking and every other sector across the EU. The requirement to sell was designed to decrease RBS's dominance within small business lending.

If its still unclear read this- particularly the intro and the section on enforcement.

http://en.wikipedia.org/wiki/European_Union_competition_law

silverfox Wrote:

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> Sorry, have I missed the point?

>

> How much EU money was spent to bail out RBS?