Brits want to sell UB to Paddy


#85

MPs step up campaign for break-up of RBS - FT.com on.ft.com/18WlgKb via @FT

MPs are stepping up their campaign for a break-up of Royal Bank of Scotland amid suspicions in Westminster that RBS and Treasury officials will try to scupper a good bank-bad bank split.
In a letter in Tuesday’s Financial Times, the influential Parliamentary Commission on Banking Standards has said it is “important for all the options for [RBS’s] future structure to be examined as a matter of urgency”.


#86

Is a major announcement on the way …

RTE: Is Ulster Bank going to quit Ireland?

rte.ie/blogs/business/2013/0 … t-ireland/


#87

Report May Recommend “Hiving off” Ulster Bank

independent.ie/business/worl … 98531.html


#88

Could do a phoenix 4 on it like with mg-rover. run it recklessly and take big salaries but perhaps that wouldn’t be a change to how it was run before.


#89

Ulster Bank Ireland is a separate company and there is no obligation on its shareholder to keep funding it so they could not be required to give it a capital injection. But if they were to cut it loose and it did turn out to be insolvent (losing €2.5bn a year and the latest accounts list the fact that they expect continued support of their parent to justify using the going concern basis because) then RBS would be walking away from however many billions (it’s not quite clear from the accounts exactly how much but probably north of €6bn) they have advanced to keep it afloat.

So walk away and take a loss of €6bn but that’s the end of it or stay in and keep plugging in €2.5bn per annum for how many years?


#91

That would presume there is at least a hope that it is solvent. The government managed to sell a chunk of BOI to Wilbur Ross for pennies in the pound but AIB, PTSB, EBS, Irish Nationwide and Anglo were beyond that. Is UB another BOI with some hope of survival in the medium term without government support or is it more like the other five?


#93

I can’t see anyone taking a 100% equity stake in Ulster Bank and taking on all their liabilities and traditional bank network. Nor can I see UB NI been hived off but I can see UB RoI been hived off.

That leaves a few options for “hiving off”.

(1) Wind down RoI operation and leave NI operation as part of RBS.
(2) ‘Do a Halifax’ with the UB RoI operation. Appoint Certus to manage your loans, repay depositors and shut your retail operation.
(3) ‘Do a Danske’ with the UB BoI operation. Shut your retail operation, go online only, drop CBI regulation in favour of BoE regulation and have the operation run as a small subsidiary from HQ.
(4) Segregate and sell. Sell your deposits to another bank, who is desperate for deposits, like KBC. Sell your loans, at a discount, to Certus. Shut the retail operation.


#94

(5) Phoenix 4 scenario. I warn you that if someone with questionable credentials starts sniffing around it while promising to most jobs then they are in it for themselves.


#96

looks like they planned to get rich regardless of whether the business survived or not
bbc.co.uk/blogs/thereporters … do_it.html


#98

UBS: UK Government Must ‘Bad Bank’ Ulster Bank

telegraph.co.uk/finance/news … rofit.html


#99

Osborne lays EU ground for any RBS split: on.ft.com/1huYuvK #FT


#100

Decision on RBS Split due in weeks.

telegraph.co.uk/finance/news … borne.html


#101

From a competition pov I hope UB remain in Ireland but as a former customer I would rather leave my money in the grass box of my neighbor’s lawn mower than ever deal with them again.


#102

It seems likely that UB will be bad banked. It is unclear yet who will run the RBS bad bank and then what will happen to the assets in the bad bank. Normally, bad bank assets are obviously sold, run-down or liquidated.


#103

Have you not considered under the bath?


#104

Have you ever known burglars to search the grass box of a neighbour’s lawnmower?
No?
I rest my case. :wink:


#105

:laughing:


#106

I have known burglars to steal lawmakers - even the Flymo used to trim the miserable grass strip in front pf of my workplace was ‘liberated’ one evening along with two bikes from our bile shed!


#107

Man, I know pinsters are generally a miserable lot, but a whole shed full!


#108

Nice spot Yogi!
I stand connected!

Well, our office manager and two cycling workmates had bile aplenty on discovery of the foul deed!