The Anonymous Widower

The Co-Op Gives Up On The Lloyds Branches

Buying bank branches, is a bit like going down Covent Garden Market at the close of business and buying all the fruit and vegetables that has not been sold.

So in some ways the news this morning as reported on the BBC, that the Co-Op Bank isn’t buying the branches Lloyds must divest itself of, is no surprise to me.

Let’s face it branch banking is dead and those that still need a branch, use one that is convenient to them and won’t like being transferred. So perhaps, many have already put their business elsewhere and the Co-op would be buying a few worthless empty shells.

The Co-op’s Chief Executive has said this.

After detailed and thorough consideration of all aspects of the Verde transaction, we have decided, at this time, that it is not in the best interests of our members to proceed with the transaction.

Against the backdrop of the current economic environment, the worsened outlook for economic growth and the increasing regulatory requirements on the financial services sector in general, the Verde transaction would not currently deliver a suitable return for our members within a reasonable timeframe and with an acceptable level of risk.

So although he’s saying it’s not for the Co-op and giving reasoned views, it would be interesting to see the figures underneath it all.

I also wonder with all the publicity that this proposed deal has generated, if it has sent a message to many bank customers, that the Co-op Bank is a serious alternative and people have moved their accounts accordingly.

So has the deal got the Co-op what it wanted, without any risk whatsoever?

Let’s hope the fallout from this deal, gives us a few new iconic bars and restaurants in those redundant prime locations!

April 24, 2013 - Posted by AnonW | Business, Finance, World | Banks