Jobs threat as 'Egg' set to be broken up
Monday 25 July 2011
One of the UK's first and best-known internet banks was broken up today in a move threatening up to 600 jobs.
The sale of Egg's mortgage and savings operations to the Yorkshire Building Society comes four months after its US owner, Citi, offloaded the brand's credit card business to Barclays.
Yorkshire will acquire the Egg name but will not take on the company's 600-strong workforce, which is largely based in Derby.
An unspecified number of staff will be retained by Citi under an outsourcing agreement with Yorkshire until the end of 2012.
Once the deal completes later this year, existing Egg customers will become members of Yorkshire.
Egg was set up by Prudential in 1998. Current owner Citi acquired the business from Prudential for £575 million in 2007 before the credit crunch and recession meant it required a US government bail-out.
Egg's remaining operations comprise a £2.5 billion savings book and £430 million of residential mortgages.
Yorkshire said the savings book will enhance its funding position and capacity to lend, while boosting its product range.
No price for the acquisition was disclosed.
Yorkshire has been on a major expansion drive in recent years, which has seen it acquire rival building societies Barnsley and Chelsea, while it is currently awaiting approval for a merger with similar-sized Norwich & Peterborough.
The Bradford-based group, which has 2.6 million members and 178 branches, has also been mentioned as possible buyer of some or all of Northern Rock, the bailed-out bank put up for sale by the Government.
Chief executive Iain Cornish said it would be a priority to provide Egg customers with a continuation of service and administration standards.
Citi said it was also committed to working with Yorkshire on a transfer of the customer accounts, adding that the consultation process was ongoing to decide the appropriate level of staffing.
- 1 Home Office says Nigerian asylum-seeker can’t be a lesbian as she’s got children
- 2 What happens to your body when you give up sugar?
- 3 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 4 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 5 Apple and Google users being spied on for a decade because of 'Freak' security flaw
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
Japanese island overrun with cats after population explodes
London property boom built on dirty money
Becky Watts: Stepbrother and his girlfriend named locally as two arrested on suspicion of murder
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
£25000 - £35000 per annum: Recruitment Genius: This firm are focussed on assis...
£7 per hour: Recruitment Genius: A vacancy has arisen for a General Processor ...
£18000 - £22000 per annum: Recruitment Genius: A great opportunity has arisen ...
£14000 - £16000 per annum: Recruitment Genius: Full time and Part time positio...