Royal Bank of Scotland
One of the terms of the Acts of Union of 1707 between Scotland and England was the payment of compensation to those Scots who had lost money in the failed Darien Scheme. A company was established to manage the funds, which accumulated to such an extent that the directors applied to the British Government to become a bank. The latter was quite happy to support this initiative as the Bank of Scotland was believed to be funding the Jacobite cause. Consequently, the Royal Bank of Scotland was founded in 1727, with the right to print its own bank notes. The years that followed witnessed intense rivalry between the two Scottish banks, each trying to bankrupt each other by accumulating their rival's notes and then presenting large numbers together. In 1745 Bonnie Prince Charlie took funds from the bank to pay for his March into England. His defeat at Culloden marked the end of this troublesome era. The next 250 years saw continued expansion, with major growth occuring after the 1st World War when it took over Drummonds Bank and William Deacons Bank. Just before the 2nd World War it acquired Glyn, Mills & Co and, with William Deacons Bank and Royal Bank of Scotland itself, became known as the Three Banks Group. 1969 saw the major acquisition of the National Commercial Bank of Scotland and a big re-organisation. In 1970 the banks in England & Wales were rebranded as Williams & Glyn's, which eventually merged into Royal Bank of Scotland in 1985. The 1980s also saw expansion overseas. Citizens Financial Group was acquired in the United States and an alliance was formed with Banco Santander. The 1990s saw the largest change to date with the acquisition of National Westminster Bank, a major high street name in England. Bank of Scotland had been the first to make a bid for the Bank, which was rejected. RBS's rival offer was accepted and the take-over was confirmed in 2000. From here, it could be said that the bank sowed the seeds of its own destruction. Against a background of phenomenal growth in the finance sector, the bank acquired the Dutch bank ABN Amro, at what now can be seen as an inflated price, having outbid its rivals. The subsequent global financial meltdown resulted in the bank having to be baled out by the UK Government and the resignation of its Chief Executive, Sir Fred Goodwin. The British taxpayer is now the majority shareholder in the Royal Bank of Scotland and it is now going through a process of recovery and reorganisation.
What´s New for December - Great Britain
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