Monday 15 October 2012

Virgin to bid for RBS?

I really like Richard Branson, his companies have really changed things and his approach to new ventures and branding ia amazing. One thing he loves to do is make a big splash where there is in fact little chance of real activity. He did this, making a big noise about buying Northern Rock during 2007, which whilst Virgin bought bits in the end, it never really was serious about taking on the whole thing.

Here we are in 2012 and it is the same with the RBS branch network. Virgin have little capital, a poor brand in banking and there is currently not much money to be made in banking. Also, Santander, who having bought Abbey, Bradford and Bingley and a few other banks has lots of experience in bank integration, could not make a deal with RBS work over 2 years!

Yet Virgin is touted as a bidder - it is a great way to get some headlines, but it will never happen. Great PR - Branson at his cheeky best.

9 comments:

Sebastian Weetabix said...

Can't stand him myself. Lousy airline, lousy railway, shenanigans over going listed/private, to the detriment of shareholders. But he gets a very easy ride from the press, doesn't he? I wonder why. Free upgrades all round, perhaps?

Elby the Beserk said...

Worst customer service possible - ALL Virgin companies I have ever had to deal with. I'm still trying to get an apology from them for their persistent cold calling we had until I lost my rag with them. Three calls in a day, at one point,despite me noting we did NOT want the new service they offered, and did NOT want them calling me all the time.

I knew a lass who was his secretary at his first enterprise. A student rag called, I think "Student". She said he was a shyster back then and I see no reason to quarrel with that assessment.

Blue Eyes said...

Unsure why RBS/the government does not simply spin these branches off? Surely new entrants are government policy?

Electro-Kevin said...

Virgin are incredibly good to work for.

Top pay, top pension, top conditions, perks (anything the company deals in is discounted for employees: flights, phones etc) A Christmas hamper delivered to your door and an invite to the summer party at his house (full weekend.)

Oh - you've undertaken a conversion course or some such ? Here's a thousand quid bonus - 30 quid for working a night shift too !

He knows how to inspire loyalty.

I am, however, talking about a taxpayer subsidised operation here.

BR never spent money on its workers like this.








Timbo614 said...

2 for 2 against.

I have no problem with him. Take him as he is. He has made a shed-load of money without (it appears so far) doing a shed load of harm.
Can't really argue with that!

Blue Eyes said...

All my ISAs are in Northern VIrgin Rock Money...

CityUnslicker said...

BE - the banks is too small to compete really with only 5% of the retail and SME market.

Blue Eyes said...

Is that smaller or larger than Metro Bank or Handelsbanken?

CityUnslicker said...

bigger than metro which is doing badly and you will notice is not listed. Handlesbanken, smaller, that is quite a big international bank. Also the issue is a share price, being publically quoted is not a good thing if you need to expand and not worry about profits - the harsh glare of markets is difficult.