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Banks vie for $6.6bn mandate

A £4.2bn ($6.6bn) global custody mandate is being hotly contested by major European banks, in-cluding Deutsche Bank, ABN-Amro, Midland and Lloyds.

Other banks in the race include Canada's Royal Trust Corporation and the US banks Chase Manhattan, Citibank, State Street, Bank of New York, Morgan Stanley and Mellon Bank.

The Glasgow-based Strathclyde Pension Fund is currently managed by the Royal Bank of Scotland (RBS). RBS has handled this custody business for the last five years and is re-tendering in a bid to retain its client.

Glasgow City Council had hoped to announce its choice of bank by the end of May, but earlier deadlines are not being adhered to, so contestants will have to wait until June 16, as selection interviews are still in process and bids are still being received this month.

Glasgow Council's Geoff Singleton says: It will be decided on price. Whatever people say, price is important. Quality is terribly difficult to measure and we're not looking for anything new. What we want is more of the same. A good basic global custody service at the best possible price. RBS are still in the running. They managed to beat off similar competition last time round.""

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