Chillin' out till it needs to be funded
After having purchased $1bn of car loans from HSBC in the US, where HSBC had a bad experience, Spanish Global Corp candidate with purchases in Germany, Argentina and Mexico, went ahead with more purchases of $4.3 billion in auto loan portfolios from HSBC’s erstwhile US operation. As HSBC gets rid of its retail exposures in the US and focusses on emerging markets, Banco Santander is seriously continuing its shopping spree in the heart of Europe, Latam and now the US
The new $4.3 billion portfolio would have cost the bank an addition $4billion on top of the $904 million it aid for the first US loans. For RBS, the bank was battling bids from commonwealth member National Australian Bank and also looking for regulatory snafus having bought abbey National, Alliance and Leicester and Bradford and Bingley since 2004. RBS is disposing off 318 retail branches in the UK as the competition commission and FSA request it to to exit as it is government owned and needs to focus on the corporate business. After the bailout, the bank is concurrently also asked to be rid of other businesses such as payment processing and probably all its call centers acquired with HBOS and ABN AMRO as well. like in the purchase of 173 German Branches of SEB, the private bank will be acquired by Santander for a minute premium of $100million over the Net Assets for the branches instead of the original $3 billion tag. The British Pound gets stronger in the meantime on the back of good news on all economic fronts. Thanks marketwatch and DowJones for quick details on the deal.