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Today's financial pages note that Abbey is selling train leasing company Porterbrook for £2bn because it is no longer "core" to its banking business. Since when has train leasing been core to any banking business? It also mentioned that Abbey's owners, Banco Santander, may be facing some credit-crunch losses...
mal
 

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Chief mouser
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Actually not that surprising as Angel was (and as far as I know still is) owned by Royal Bank of Scotland, and HSBC Rail UK unsurprisingly by HSBC. See http://news.bbc.co.uk/1/hi/uk/3894839.stm

Mind you why a bank would own a leasing company is a bit of a mystery, but I suppose that not that many people have 2 billion laying around to play with.

Also not too sure why this in the DCC section.

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DT
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Moved out of DCC. Don't want to confuse the subject further


When these building societies became banks, they had to look for all sorts of means to earn profits to please their shareholders. Perhaps this was one such venture. Obviously the new Spanish owners of Abbey don't want to want the hassle of leasing trains in the UK.
 

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QUOTE (Doug @ 28 Oct 2008, 17:17) <{POST_SNAPBACK}>Obviously the new Spanish owners of Abbey don't want to want the hassle of leasing trains in the UK.

Presumably because they get more publicity out of Formula 1

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Angel Trains is now owned by Babcock & Brown (if memory serves me correctly) and HSBC Rail is likely to be sold off fairly soon. I actually worked for the latter for a year during my first degree course.

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Dan
 

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Hi Guys,

Its not surprising that a bank owns a leasing company.

Ultimately there is no difference (apart from the size of the exposure) between leasing a railway wagon or leasing a car. Admittedly there are far fewer people wanting to lease railway wagons than cars.

In this parts of the world banks have moved away from this sort of credit exposure over the last 5-10 years. The biggest car leasing firms 10 years ago were owned by banks.

Ultimately it is not this sort of lending that the has got the banks into trouble.

John
 
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