RBS 'considering legal action against Santander'

17 October 2012

Legal action could be brought against Santander by Royal Bank of Scotland (RBS) after its decision to pull out of a deal to purchase 316 branches from the British financier.

Last Friday (12 October), it emerged that an agreement between the two banks worth around £1.65 billion ($2.6 billion) - which was struck more than two years ago - had fallen through.

Santander claimed it was pulling the plug because issues such as IT problems were causing the deal to be significantly delayed, an allegation RBS flatly rejected.

And, according to the Daily Telegraph, the 82 per cent state-owned bank is now "looking at the legality" of its Spanish counterpart's withdrawal on the grounds this may have cost it up to £1 billion.

Sources told the news source that RBS directors "strongly refute" Santander's reasons for pulling out and suspect the ongoing eurozone debt crisis is the real driving force behind the decision.

By Gary Cooper

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