Woman with umbrella walking past the London headquarters of RBS
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RBS-Santander sale collapses

12 October 2012 Last updated at 23:02 BST

The sale of 318 branches of Royal Bank of Scotland and the business of 1.8 million of its customers to Santander has collapsed.

It is thought the Spanish bank pulled out of the deal because of problems regarding the integration of the two companies' IT systems.

The sale had been ordered by the European Commission in return for the UK government's £45bn rescue of RBS.

Hugh Pym reports.