The insured also have to part with their insurers, including Churchill and Direct Line and other business units to strengthen the position of the bank. The fate of Northern Rock bank is divided into two parts, recovering the good part of the bad part. This a part contain Breena 18,500 million pounds in deposits and 10,000 million pounds in mortgages healthy. In addition to containing the 76 branches and most of the staff. What remains of the entity, a prate bad are the toxic assets that remain in state hands, that is, it will be assumed by the taxpayer. There is no doubt that the process will generate a radical change in the structure and composition of the financial system.
Even in its regulatory reform, will also involve changes in its dynamics. It is for these reasons that this process of reorganization of the British financial system will not be immediate and can extend for several years. As British financial institutions with problems that are more concerned with their executives sleeping only a few hours a day and living at crucial for the future of their companies, other banks are those institutions with interest to acquire or at least part of business. Santander would be interested in the purchase of the 312 Royal Bank has branches in England. Thus, an entity headed by Emilio Botin could strengthen its presence in British banking and position of a very good way to compete for market. From BBVA although not explicitly demonstrated interest, is seeking to regain lost ground in its competition with Santander who has released several bodies advantage thanks to its aggressive strategy of internationalization that has taken him to increase its presence in markets keys such as Latin America and the U.S.. Beyond the success that the British government may have to tighten up the financial system, the strength will be key to future advances are made in regulation to avoid that can lead to a situation like the current crisis.