Trumpo predicted that these vulnerable money market reliant banks would need to get in bed with a big brother back in September.

see post http://www.trumpo.com/blog/money/are-northern-rock-alliance-leicester-and-bradford-bingley-finished/

It looks like we were once again on the money with our views, Northern Rock we know about, let see what happens with Bradford and Bingley. Further consolidation looks likely.

FT reported today “What attracted Santander to A&L was its portfolio of business clients, according to people close to the Spanish bank. About 20 per cent of A&L’s lending is to small and medium-sized businesses. By contrast, Abbey has made little headway in the corporate banking world.

By adding A&L’s business clients to the Abbey franchise, it is thought that Santander could bring forward its expansion programme for Abbey by two years, according to people close to the Spanish bank.”

Trumpo feels that the acquistion would be good for the mortgage broking community, the current A&L products are not built for intermediary distribution, A&L is most definitiely a direct to consumer player. The direct to consumer market is going to be very tough in 2008 so a change in strategy or sale to an assett backed player is logical as we predicted back in September.

Any comments would be appreciated. 

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