Todd Wallack, Boston Globe, on Citizen's Bank
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Feb 26, 2013|
Todd Wallack, Boston Globe, on Citizen's Bank
Transcript - will not be 100% accurate
Banking sector has gone through tremendous turmoil during the last five years and it would appear. That local thing is up for sale we're joined by Todd Wallace from the Boston Globe now on good morning. -- at -- dog -- you so. Set us straight as Citizens Bank can be sold. Well the entire bank won't be sold -- at least not anytime soon. Put Royal Bank of Scotland on hold. Is planning to sell a piece of that to the public. They're gonna launch an initial public stock offering and sell between twenty and 25%. Of the bank to the public's though. It'll have its own little stock ticker symbol the peace separately publicly traded and -- you and I can buy shares of its Citizens Bank. Why you why are they doing this anyway if it was such a good company. And in their -- by RBS why wouldn't they just hold onto it if it's profitable. Well RB especially -- it is it is profitable it is a good company it's doing well it's growing and people were even more. -- a couple of years right now it's estimated. We're roughly twelve billion dollars -- local war room last pregnancy talk to buy it ardea. Went through the financial crisis. And had to get details now. By the government only that -- US government departments were used to talk about their case the answer British bank. If they were bailed out by the British taxpayers since bill -- 81% of the bank to. And so on light stereo like most of the big banks have in the US which are prepaid. US government. So. A corporate regulators. Want them to accept it -- about it I have been putting pressure on. Ardea detritus -- pieces of the day. To try to earn more money and RBS is basically. That. Today you know this is a bad time -- -- -- related assets generating money. We don't wanna sell ourselves wanna -- totally economy grows. Grows if we sell all a lot of people have been expecting to only higher bank with -- sometime within five years and basically. To hold off. Investors and regulators. And try to create some more certainty there now in into an account on Thursday -- -- -- portion of that to the public. Read some additional capital for the -- I'm not I'm fine. You -- I IC this. -- I think they get a phone call from TD bank core. Wells -- somebody who doesn't have a presence in new England and they say and we won by 20% of the will by the holding him. Well it's certainly it's certainly possible when you put -- the bank up for sale it's certainly does raise the question in what does that. What -- -- word. If you're selling a piece of that you weren't the only entire thing and so there's a lot of speculation by investment bankers that it could very well attract suitors like the bank. Or others PNC is is and other bankers. What America bank of speculated that some Souter could still forward. An offer to buy an entire day and that of course have put Serbia and apply because they're. Both owned by the British taxpayers of. But the rest have to take the offer don't think is taxed -- -- So we illegally. Or -- he knows how bright future obligations as shareholders. So if they get a political offer it to keep typical for them to turn it down. Now it is what. When you look at it from a consumer standpoint it would of one of our audience members is a a customer of Citizens Bank what's the impact. Because I've had a lot of complaints not just about Citizens Bank but all the big banks -- about the excessive these in the overdraft protection cost and everything you hear a lot of criticism leveled towards the big bad day to six. In the near term it shouldn't make any different. And even two years when they launch a public offering insult piece of it to the public it shouldn't affect the operations today. If it's higher bank wanted to console then that's. A matter of who winds up buying the and other. Bank quite PD of them and -- closed some overlapping branches are combined air operations but that's. That's a far off from the future. So in the immediate term. -- listeners don't have anything to worry about it it's document change. The got a very good now Ari thanks Todd appreciate your time -- -- all right. -- wallet from the Boston Globe joining us today on the financial exchange.