British Bank RBS has suffered a setback in an attempt to offload over 300 branches as part of an agreement for its bailout in 2008 after one of the key bidders has dropped out. Santander has distanced itself from the deal as low interest rates cut into bank profits, reducing the attractiveness of any expansive purchases. Previously RBS had tried to spin the branches off under the name Williams and Glyn but this failed after rising costs left the bank £345 million out of pocket for the attempt. The prospect of a fire sale will worry the government which still owns 73% of the bank as the branches must go to satisfy EU rules on state aid by the end of 2017.

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