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.
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.
Royal Bank of Scotland's deal to sell branches to Spain's Santander has collapsed, with one source saying it is "a major blow".