Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Latest Breaking News
In reply to the discussion: RBS will leave Scotland if voters back independence [View all]Divernan
(15,480 posts)30. S&P warning re Iceland, Part II
(This article pre-dates the announcements from Royal Bank of Scotland and Lloyd's that they would in fact relocate in England in the event of a YES vote.)
S&P points out that while Icelandic banking assets in the run up to the crash peaked at 880pc of GDP, in post-independence Scotland they would equal 1,254pc of GDP. In our view, the willingness and ability of a future Scottish government to support its banking system is challenging at this point, said the ratings agency.
Danny Alexander, Chief Financial Secretary to the Treasury, warned in February that if the yes vote won Scotland would face an exodus of financial services firms to the rest of the UK. Were able to have that scale of financial sector in Scotland because were part of the United Kingdom, because we have access to the Bank of England, the deep pockets fiscally of the UK Government as well, which helped to bail out RBS and Bank of Scotland, said Mr Alexander. He added: I think its very hard to see how major financial institutions could keep their headquarters in an independent Scotland if there was no central bank and no lender of last resort.
Edinburgh-based insurer Standard Life has already said it could relocated large parts of its business south of the border if Scotland became independent. Lloyds and RBS have both refused to comment on what they would do in the event of independence.
However, S&P said that both banks could likely face pressure to move large parts of their operations out of Scotland, given that the bulk of their customers are outside of Scotland.
Edit history
Please sign in to view edit histories.
88 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
Well, no - BoS is a subsidiary of Lloyds, and Clydesdale said they'd do the same thing
muriel_volestrangler
Sep 2014
#46
It's complicated, but independence wouldn't mean any automatic loss
muriel_volestrangler
Sep 2014
#60
I don't know; I would have expected something like that for Lloyds and RBS
muriel_volestrangler
Sep 2014
#75
My point (and Lenomsky's, I think) is that splitting the Scottish and rUK business
muriel_volestrangler
Sep 2014
#80
Tremendous uncertainty re rights to North Sea Oil,membership in NATO/EU/UN, currency, etc.
Divernan
Sep 2014
#5
Change does bring uncertainty - a lot of it in this case. Tough to balance the fear of change
pampango
Sep 2014
#10
Good point. Norwegians have the freedom of movement, trade and work within Europe that
pampango
Sep 2014
#37
Scottish vote prompts demands for more independence for Wales, No. Ireland & England as well.
Divernan
Sep 2014
#13
Iceland didn't honor its deposit insurance (like the FDIC);cost savers and creditors billions.
Divernan
Sep 2014
#27
This is about the bank credit ratings and the need for all banks to keep reserves.
amandabeech
Sep 2014
#35
Well, imagine Texas decideds to secede. Ya think some corporations headquartered there might
Adrahil
Sep 2014
#55
I would say that stating their plans now in the event of a Yes vote is a good thing.
Nye Bevan
Sep 2014
#63