Loan brokers welcome new entrant's bid for Rock
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Mortgage brokers have welcomed the prospect of a new high-street bank as NBNK prepares to make a bid for Northern Rock.
NBNK was launched and listed on Aim in August 2010 by Lord Levene and former Treasury select committee chairman Lord McFall as an acquisition vehicle to create a new banking group.
NBNK chief executive Gary Hoffman was chief executive of Northern Rock until last November. Under his exit terms, Hoffman was prohibited from making a bid for the bank for 12 months.
It is reported that Hoffman approached Northern Rock and UK Financial Investments, which manages the Government’s stakes in UK banks, earlier this month and was given clearance to start work on a bid.
NBNK was reportedly in talks with National Australia Bank last month to buy the Yorkshire Bank and Clydesdale Bank brands as a gateway to acquiring the 632 branches Lloyds is being forced to sell by the European Commission.
It is thought that NBNK could join the Lloyds and Northern Rock branches to create a new high-street bank.
London & Country head of communications David Hollingworth says: “There has been a huge amount of consolidation across the banking and mutual sectors and what consumers are seeing in blunt terms is fewer lenders.
“If we get some credible new names, it is hard to see what the downside would be.”
Emba group sales and marketing director Mike Fitzgerald says: “We are ready for some new names in banking. Lloyds and Northern Rock have got branches in some good places. The fact that there could be a new name going over the door will only pull people in.”
NBNK declined to comment on the issue.
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