Twelve men have been arrested over an alleged multi-million pound cyber plot to take over Santander bank's computers.
Thousands of workers are facing mounting uncertainty over their jobs after the collapse of a proposed sale of RBS branches to Santander.
The chief executive of the RBS said it was "disappointing" that a proposed sale of 316 branches to Santander had collapsed.
– Ana Botin, Santander UK CEO
Our guiding principle throughout this transaction has been a seamless journey for customers – which requires the business to be delivered to Santander UK by RBS in a steady state. We have concluded that given delays it is not possible to complete this within a reasonable timeframe.
I can assure all affected customers that there will be no disruption to the service they receive. It is business as usual in all of these branches, and customers don’t need to take any action. While this is a profitable part of our business that we would rather not part with, RBS has worked hard to ensure it is substantially separate from our UK branch network and corporate business and largely ready to be taken on by a new owner.
– Stephen Hester, RBS Group Chief Executive
Much of the heavy lifting associated with a transfer has already been completed, including separating data for 1.8 million customers and putting in place a standalone management team.
It is of course disappointing that Santander decided to pull out of this transaction, especially for the customers and staff involved. However, RBS’s strong progress in our restructuring plans means we can continue to provide a stable home for this business and its customers pending a further resolution.
RBS will commence a new process of disposal and will provide a further update on this in due course.
- Royal Bank of Scotland planned to sell 316 branches to Santander.
- That included 311 branches in England and Wales and five NatWest branches in Scotland.
- The deal was announced in August 2010 and was expected to be completed at the end of 2011.
- The sale had been ordered by the European Commission after a state rescue for RBS.
- Santander reportedly paid £1.65 billion for the RBS deal.
The RBS and Santander deal is confirmed off - my source describes it as a "major blow" - official statements should be within the hour.
Santander pulled the plug - putting IT systems together was said to be the biggest obstacle.
I am hearing the Royal Bank of Scotland may call off the deal to sell branches to Santander - it has already been hit by delays. I understand joining up IT was a big problem.
Statements from RBS and Santander are imminent - so if this deal has not come off, what happens to those RBS branches that were up for sale?
– Santander UK
The change to Moody’s credit rating of Santander UK plc has no impact on our businesses in the UK or our plans for future growth. Santander UK plc is an autonomous subsidiary of the Santander Group, with more than c. 90 percent of its total assets held in the UK and a Eurozone sovereign exposure of less than 1% of assets. Santander UK plc is regulated in the UK by the Financial Services Authority (‘FSA’) and relevant deposits are protected by the Financial Services Compensation Scheme (‘FSCS’).