Danske Bank to Shut Down

L

Lightning

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Danske Bank to close with loss of 150 jobs.

http://www.rte.ie/news/2013/1031/483729-danske-bank-to-close-with-loss-of-150-jobs/

Bad news for competition.
 
...and another demonstration of how much one should trust bankers: they've been denying this was going to happen for years now.
 
And potentially good news for existing borrowers with cheap tracker mortgages.

I will start a separate thread.
 
Wonder what will happen to those with custody accounts? No details on web site

Other Products
Danske Bank will be writing directly to all customers regarding its plans for other products in the coming weeks to outline what steps should be taken. You will get at least 2 months notice before any products are withdrawn
 

I'd be curious to find out that as well
 
Danske say re mortgages "There is no change to your mortgage arrangement. The outstanding amounts will continue to be repaid within the existing agreed terms and conditions. We will be writing directly to all customers in the coming weeks to confirm this position." . . but I assume that they will strip away discounts (e.g. 0.45% Prestige account discount on SVR) when the close current accounts.

Coincidentally they rang me yesterday to see if they "could do anything for me", and I said I thought they might be ringing to say that they were withdrawing from the Irish market and that I have to move to another bank. "Not at all" they said.
 
michaelm said:
Coincidentally they rang me yesterday to see if they "could do anything for me", and I said I thought they might be ringing to say that they were withdrawing from the Irish market and that I have to move to another bank. "Not at all" they said.
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I got a similar call a few weeks ago. There must have been some internal campaign to drum up some new business or something. I did mention that I might be interested in borrowing to fund an extension to my house, but that having to traipse out to Swords to discuss same wasn't that appealing. I guess I won't be doing that anytime soon...
 
michaelm said:
Coincidentally they rang me yesterday to see if they "could do anything for me", and I said I thought they might be ringing to say that they were withdrawing from the Irish market and that I have to move to another bank. "Not at all" they said.
Click to expand...

In fairness, the staff member may not have known about the intended closure. I'm not sure exactly how lacking the "lack of consultation with staff" reported in the news was. They may have known through rumours and only found out officially today.
 
From reading the papers, it appears that it was announced from Copenhagen, so they may have found out about it at the same time as everyone else. Not nice news coming up to Christmas.

We only have to change bank accounts, they will have to change much more.
 

Yeah, hopefully some were prudent enough to see 'the writing on the wall' over the past year and have some savings set aside to tide them through. Unfortunately, this is rarely the case.
 
I found out about this yesterday, so I am shocked to hear that staff may not have known until the official announcement this morning. Staff may have believed the official line that Danske Bank were "committed to Ireland". Hopefully, they saw through this and realised the writing was on the wall and have made plans.

Danske Bank joins BoSI/Halifax, PostBank, Anglo Irish Bank, Irish Nationwide, Northern Rock, ACC Bank and First Active all closing their doors here since the 2008 crisis. All reducing competition as a consequence.

Are we at the end of exits from the market? There are 9 deposit-taker providers left. 4 of the 9 are going nowhere soon.
  1. AIB/EBS - Committed. EBS future yet to be made clear.
  2. BoI/ICS - Committed. ICS likely to close.
  3. KBC - Seem committed.
  4. RaboDirect - Seem committed.
  5. PTSB - Survival plan still with the EC.
  6. Ulster Bank - UK Government currently examining future, even if the UK government keep Ulster open, which they probably will, the long term future of Ulster remains in question.
  7. Leeds Building Society Ireland - Seriously questionable if they will stay in Ireland.
  8. Investec - Difficult to tell. Seem happy with their niche.
  9. Nationwide UK - Difficult to tell. Keep dropping rates, not opening more branches, no longer aggressive in the market like they once were but have market leading regular saver product to drive small customers in. Reasons to think they are getting cold feet but also reasons to think the opposite.
 


Very well put my friend.

The majority of the Banks which have closed / exited the market, have not treated their staff well - often misleading them right up until minutes before they make announcements to the newspapers about their true intentions. I'm not talking about the very well paid, top tiers of staff from the Banks here, but the majority of Bank staff that work hard to try and earn a living, pay their homeloan and put their kids through school just like you and I.

I have to say I'm very disappointed with the way in which the Banks which have previously been licenced here in Ireland have been permitted to simply "walk away" from their customers, their staff and the country. It's long past time the legislation and regulations were changed, to force a Bank to commit to the country with some sort of restrictions on how and when they can shut up shop.

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Sorry to get back on topic....

Has there been any mention of what Danske are doing with their business up the North or what sort of support they intend to offer the staff the are making redundant in terms of payments, education, career advice, counciling etc ?
 
PTSB should do a deal with An Post replacing Danske facilities but go one step further and offer it's complete portfolio of products similar to PostBank.
 
MrEarl said:
Has there been any mention of what Danske are doing with their business up the North or what sort of support they intend to offer the staff the are making redundant in terms of payments, education, career advice, counciling etc ?
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Today, Danske Banks operations in Northern Ireland have announced that they have entered into profitability for the first time since the crisis began. They are one of the big lenders and I know of a few who have secured 95% mortgages in Northern Ireland over the past year. They'll not be closing down there.
 
theresa1 said:
PTSB should do a deal with An Post replacing Danske facilities but go one step further and offer it's complete portfolio of products similar to PostBank.
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PTSB should simply purchase the Danske customer base, like they did with Northern Rock and INBS. PTSB still need significantly more deposits to close a high loans to deposits ratio.
 
CiaranT said:
PTSB should simply purchase the Danske customer base, like they did with Northern Rock and INBS. PTSB still need significantly more deposits to close a high loans to deposits ratio.
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I wonder would that cost them much? Usually the banks rely on people putting switching on the long finger, permanently, when the increase their fees. Danske are going to result in a lot of forced switchers entering the market and, with PTSB being one of the better accounts available, you'd expect a lot of them to end up there anyway.
 
ronaldo said:
Danske are going to result in a lot of forced switchers entering the market and, with PTSB being one of the better accounts available, you'd expect a lot of them to end up there anyway.
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Indeed. I'm likely to switch to PTSB (all bar mortgage) . . but what will Danske do with mortgage rates given that they don't need to attract new business? If I move mortgage I'll lose the TRS related to 2012 mortgages.
 
Well, if all the Danske Bank customers got together and collectively bargained, we could get a better deal from a different bank than if we go as individuals...anyone up for it?
 
danske custody account

I am really disappointed with Danske banks announcement as their online and tablet service was superb, more than likely I will switch my current account to PTSB.
Does anyone have any idea as to how they will handle the closure of the custody account?
 
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