Saxo Bank acquires a small local bank

Saxo Bank is about to make another major step in order to become a fully fledged retail bank. Saxo Bank will buy the ailing Brørup Savings Bank for 209 million kr ($36.7 million) which will grant it access to the infrastructure required to offer general banking business.

Although Saxo Bank has a full banking license, it hasn't really offered general banking business so far, mainly because it wasn't connected to the proper IT infrastructure needed to offer customers cash in advance, PBS-Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and other general banking activities.

This is why Saxo long been looking for a bank to acquire. Now it set its eyes on Brørup Savings Bank, which has been ailing, mainly because of a failed speculation in unlisted securities. In 2009, the Savings Bank had net interest and fee income of 113.9 million kr ($20 million), but a thumping loss of 74 million ($13 million).

Looks like Saxo and FXCM both like buying failing business for peanuts.

Read more here.