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Lloyds' Co-Op Branch Sale Collapses

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http://www.bbc.co.uk/news/business-22276082

"The planned sale of 632 UK bank branches by Lloyds Banking Group to the Co-op group has fallen through.

The Co-op blamed the continued economic downturn and tougher regulatory environment imposed on banks."

We have no more bananas.

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How can the cost involved in maintaining so many high street banks and building socys be viable?.......most people now use on-line banking and may only need a cash machine.....the post office now serve many different bank customers.

If people need specialist face to face service, why can't they meet up in an office somewhere or visit them on their own premises or home or even via something like skype.....just saying. ;)

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Pesto speculates that the Co-op might be moving out of banking entirely.

My link

Interestingly, comments are allowed below the article, and the best-rated ones are poo-pooing Peston's analysis.

EDIT: just wanted to add: as a Co-op customer (also a customer of 3 other banks), I would be astonished if they moved out - they have by far the best customer service. So I too am taking Peston's analysis with a pinch of sodium chloride.

Edited by DeepLurker

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New banks will have no branches and use the post office for counter services, ala first direct.

Makes sense to use existing network than to have duplicates

Im with the Co-op...i pay in via the Post Office.

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In recent days there has been talk in various financial articles about another banking liquidity crisis beginning.

I can't see how bearing in mind all the QE but is it possible that the Co-Op is seeing this starting and hence this is not a good time to be buying up the Lloyds banks.

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I think this is much more a co-op issue as they hadn't learnt all the lessons from the Britannia merger at the point they agreed to this. (the more time that has past since then the less keen they will have been)

Also I believe the FSA were asking questions as to whether the Co-op management overall (not just the bank) had sufficient expertise to oversee the bank in the post 2007-08 regulatory era and whether the bank might need to be hived off from the rest (this is hinted at again in the BBC article) in which case they would have to focus on that and not taking over the Lloyds' branches.

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I get a sense of deja vu: thought it was reported some time ago that the Coop didn't want to buy surplus branches. Wasn't the Britannia acquisition 'instead' of it, to get a network of dedicated branches over and above in-store services?

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http://www.moneysavingexpert.com/news/banking/2013/04/lloyds-branch-sale-to-co-op-collapses

Government-backed Lloyds — which includes Lloyds TSB, Cheltenham & Gloucester (C&G), Halifax and Bank of Scotland — will now pursue a stock market flotation for the earmarked branches this summer

Ahhh....Lloyds are a floater. :lol:

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New banks will have no branches and use the post office for counter services, ala first direct.

Makes sense to use existing network than to have duplicates

What will we then do with all that excess empty retail space, homeless shelters maybe?

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In recent days there has been talk in various financial articles about another banking liquidity crisis beginning.

I can't see how bearing in mind all the QE but is it possible that the Co-Op is seeing this starting and hence this is not a good time to be buying up the Lloyds banks.

Oh God, I hope so :lol:

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Say what you like about the Co-Op but they're one of the very few to come through the whole crisis completely untainted.

If only all banks were so well run...

I'm sure I read something in the last few days saying they had also been close to collapse - does anyone else recall seeing that article?

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If only all banks were so well run...

What makes you say that?

Ok they aren't owned by the tax payer, but Co-Op were nailed by the FSA over their disgraceful performance on PPI - they rejected a high proportion of the initial claims against them, a high percentage of those appealed to the Financial Ombudsman Service were overturned - eventually Co-Op were put into special measures by the FSA, ordered to employ an independent auditor and an independent company to review all of their rejected complaints assessments.

Just because they aren't one of the big 4 and in the headlines doesn't make them whiter than white.

Re. Lloyds & Co-Op...

I know some people working on the Lloyds end of this - the project name has been unofficially re-christened from 'Verde' to 'Merde' today :D

AFAIK the proposed deal was always that Lloyds would hive all the accounts off into seperate area of their back office systems, and then effectively act as both the Agent from a payment perspective (i.e. handling the interbank payments) and 'service provider' from an accounting perspective (i.e. providing the accounting platform). The fact nobody has bought it yet doesn't really affect the extensive effort and expenditure they have gone to seperating it all away from the rest of their business, which was mandated.

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Say what you like about the Co-Op but they're one of the very few to come through the whole crisis completely untainted.

If only all banks were so well run...

Wasn;t it announced last month they had gone from profit to a £600m + loss over the last year, in part due to 'bad loans'?

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this has been on the cards. there isnt enough busisness to go round! oh well this is a protected sector so looks like they are bringing back the Tsb brand. another option was an ipo. sorry i cannot stop laughing!

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In recent days there has been talk in various financial articles about another banking liquidity crisis beginning.

I can't see how bearing in mind all the QE but is it possible that the Co-Op is seeing this starting and hence this is not a good time to be buying up the Lloyds banks.

Beginning?

The last one never ended surely?

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Wasn;t it announced last month they had gone from profit to a £600m + loss over the last year, in part due to 'bad loans'?

Yup. And they blamed bad loans on Britannia which they merged with a few years back. I'm sure that put them off another big merger / purchase

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  • 243 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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