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Clydesdale sale? Hold your horses

Douglas Fraser | 17:26 UK time, Monday, 20 April 2009

It's been neglected amid the problems for its larger, long-established Scottish banking competitors, but it's probably the kind of neglect that the Clydesdale Bank rather welcomes.

Under the large wing of the National Australia Bank (NAB) and a partner of Yorkshire Bank, based in Leeds, it has only featured in the public eye of late because of speculation that they might some day get sold off.

The promotion of Cameron Clyne to NAB chief executive, effective from January, has helped the speculation, as he figures out which way to take the bank forward. Its annual figures are out next week, so we will then be able to see test the claims that it has maintained a strong balance sheet through the banking tempest of recent months.

But ahead of then, Mr Clyne has been talking to a couple of British newspapers, with contradictory reports resulting. The Sunday Times had him "probably" offloading his two British banks, but not yet.

"You couldn't say you are going to do X or Y in three years because you have no idea what the market is going to look like," he's quoted saying. "The right thing to do, irrespective of the medium-term strategy in Britain, is to support and grow it. The decision will actually become quite clear at a point when the market normalises".

But the Yorkshire Post this morning puts a different interpretation on what I'm told were the same words - that is, a bank chief should never say never about disposals or acquisitions, but this is a time to build up the Clydesdale and the Yorkshire, to keep them strong, to grow them organically and perhaps to take cautious advantage of the opportunities out there. And no, they're not for sale.

    While on that familiar theme of Scottish banks, another interesting Sunday newspaper report has Johnny Cameron, who ran the division of the Royal Bank of Scotland that bought into most of its problems, being blocked from taking on a new senior job in finance.
    The Financial Services Authority won't comment on his case. But it is pointing out that it recently announced it is going to be much more robust in its role of approving senior appointments in British financial institutions.
    To take a senior and influential role, you need to win the FSA's approval. If you move from one bank to another, that approval transfers. But if, let's say, you left your last job in October, and have only had a very large pension to keep the wolf from the door since then, you have to re-apply for FSA approval.
    And whereas it used to be a paper-based, rubber-stamping operation, the most senior people can now expect to face an interview with the regulator.
    Watch out for a cracking encounter if Sir Fred Goodwin ever seeks a return to FSA approval.

Comments

  • Comment number 1.

    The Clydesdale are doing just fine under the NAB thank you very much! For years I've had a LloydsTSB and a Clydesdale Bank account and of the two - I have to admit the bank giving the most "perks" was the LloydsTSB (formerly TSB when I first had it opened by mother dear, I was 1 at the time!)

    Unfortunately - despite offering up free travel, home and loan insurances - The Lloyds took a dislike to my inability to pay bills as a student and as a result - I was charged over £3000 in overdraft charges from 1998 to 2003. I promptly dropped them like a hot potato and used my clydesdale account instead.

    The £3000 (with interest) I subsequently claimed back from Lloyds and as a result - I felt perhaps like continuing to bank with them was an option.

    However! Soon after my claim (but not because of my claim I hope to god!), the banking sector started to shake, and then teeter and before I knew it, LloydsTSB was running cap in hand to the BoE for money to recoup it's losses from dodgy investments...

    I see now that whatever Lloyds was offering up and making money on with bank charges and insurances, it was risking far more than it's slighty more dour, safe distant cousin across the high street.

    Faddish special offers and sweetners! Beware!

  • Comment number 2.

    In accordance with their policy of selling everything off into foreign ownership I would have thought Brown and Darling would want to keep NAB sweet in order to get them to buy RBS if and when it's ever ready to be privatised..

  • Comment number 3.

    When Fred Goodwin left the Clydesdale for the Royal in 1998 some would have said I am sure that they were sorry to lose someone of his stature and expertise, although not the branch staff who were already suffering from his plans.

    Little did they realise what a lucky escape they had.

    RBS, boring and safe to boom then bust in ten years.

    UK, well much the same.

    Hang on a minute, has anyone seen Goonwin and Broon in the same room at the same time?

    Nah, forget I said that, Gordon at least is staying to face the music and it would probably have happened anyway under the Tories, economies are cyclical, banks never used to be.

    As for Fred applying for another job in finance, well he has the nerve for anything, but his CV is a bit iffy.

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