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 and other general banking activities.
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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.