planned financial deal between the Bank of Scotland and Christian Coalition founder Pat Robertson collapsed on Friday, as bank officials announced that they were withdrawing from the proposed joint venture due to remarks the televangelist made concerning gays, ethnic minorities and other groups.

   Robertson and the BOS had agreed to enter into an electronic banking enterprise which financial sources described as "worth billions of dollars." But in recent weeks, as word of Robertson's background spread, human rights, religious and other groups pressured the bank to sever its ties with the controversial American preacher. Events reached the breaking point last week following remarks Robertson made on his "700 Club" television show claiming that Scotland was a "dark place" overrun by powerful homosexuals.

   Word of the pending collapse of the Robertson-BOS arrangement began percolating through financial circles and the media early last week. On Friday, Bank of Scotland's chief executive, Peter Burt held a meeting with Robertson and his representatives in Boston. Most reports suggest that the bank had decided to dissolve its deal with Robertson on Tuesday night, amidst growing threats of customer withdrawals and a drop in the bank's stock exchange performance.

   After a six hour conference, the Bank issued a brief statement on Saturday noting, "Dr. Pat Robertson and Peter Burt, following a meeting in Boston yesterday (Friday), agreed that the changed external circumstances made the proposed joint venture between Robertson Financial Services (RFS) and Bank of Scotland unfeasible...In reaching this agreement Dr. Robertson expressed regret that media comments about him had made it impossible to proceed."

   As of Sunday afternoon, there has been official statement from Robertson.

   But while critics say that Bank of Scotland must now begin repairing its tarnished image resulting from the failed deal, there is new controversy over how much money Robertson may recoup. The Observer newspaper of Britain reports in this morning's edition, "The bank must pay Robertson more than 10 million (Pounds -- about $16 million) for calling off the deal to set up a US telephone banking network..." It is believed that Robertson invested somewhere around $12,500,000 for a 25% share of the action. The Daily Telegraph newspaper mentions a higher figure, though, of "up to" 30 millions pounds, or roughly $48 million, but seems to be basing that number on what it projected as a substantially higher investment by Robertson. CNN is reporting that the Bank of Scotland "would buy out Robertson's stake in the venture, believed to be worth about $50 million," adding that "Bank officials would not discuss details of the agreement."

   A figure of between $9 million and $16 million is reported by the London Sunday Times, while the latest BBC postings do not give a specific figure.

   Whatever the compensation Robertson might receive, though, opponents saw their campaign to end the BOS meet with resounding success. The Scottish Trade Union Congress had threatened to switch the business of its 100,000 member-strong organization who use a bank affinity card. Other human rights and advocacy groups, including the Lothian Council, were contemplating similar action; and already, the bank had lost an estimated 400 to 500 smaller individual accounts in protest of its association with Pat Robertson.

"Had the deal gone forward, that action could have landed Robertson in legal trouble for possibly commingling the resources of one of his ministerial-political outreaches with what was clearly intended to be a for-profit venture..."

   Assessing the deal, an anonymous Bank official told CNN, "our marriage was short and unhappy." Tim Hopkins of the Equality network, a human rights group based in Edinburgh, remarked, "It's very, very unfortunate that he (Robertson) is ending up pocketing 18 million (Pounds) which he can now use to promote his politics -- although better that than 25% of future profits. He added that Bank of Scotland must now rebuild its reputation with the community, adding, "It seems it was OK to badmouth minorities, but what made the difference to the bank was when Robertson started attacking Scotland."

   In covering this latest phase of the Robertson-BOS deal, The Observer newspaper repeated its allegation that the bank was planning on access to "lists generated by Robertson's Christian Coalition organization to gain customers..." Had the deal gone forward, that action could have landed Robertson in legal trouble for possibly commingling the resources of one of his ministerial-political outreaches with what was clearly intended to be a for-profit venture. Robertson has had similar accusations leveled against him, including charges that airplanes in his Operation Blessing charitable ministry transported mining equipment and other supplies for a diamond exploration business he had established in Zaire known as the African Development Company. ADC has folded, but the Virginia State Attorney General's office is expected shortly to make public a report on the allegations.

   Robertson faces potential problems on another financial front as well. He recently was named to the Board of Directors of the once-trendy Laura Ashley clothing and furniture chain, where he controls 2 million company shares valued at about $450,000. According to the London Times, unidentified key shareholders are demanding Robertson removal, and six trustees of the Laura Ashley Foundation, including Sir Bernard Ashley, joined in the clamor for Robertson to go. "He survived the vote," notes the Times, "but pressure is likely to be maintained to get him removed."

[text only]