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.
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 4 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
Amber Peat: Body found in search for missing 13-year-old who ran away after argument with her parents
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Sepp Blatter resigns: FBI are investigating outgoing Fifa president, claims report
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
£23000 - £25000 per annum: Recruitment Genius: This company has over 40 years ...
£9 per hour: Recruitment Genius: This high quality thread manufacturer is curr...
£40000 - £55000 per annum: Recruitment Genius: A market leading acquirer and m...
£35000 - £45000 per annum: Recruitment Genius: Fully qualified electricians re...