Is HBOS safe in the hands of Lloyds Bank?
As the £12 billion acquisition of HBOS by Lloyds Bank is waved through by the government many customers are asking if their funds are safe with Lloyds Bank? Or will there be another run on the banking sector?
Part of the reason why Lloyds Bank was 'chosen' by the government, which is behind the deal, is the fact that the City sees the bank as a safe pair of hands. It has long been appreciated that Lloyds Bank is one of the more conservatively run banks in the UK which is partly because it got its fingers so badly burnt during the 1980s with the third world debt crisis. So if any bank is qualified to lead the HBOS group to recovery then it is Lloyds Bank.
However, the news on the employment front is not so good with some observers suggesting that up to 40,000 jobs may be at risk in what would be the largest job cull in UK banking history. Whether these figures are on the high side or not, there will literally be tens of thousands of job cuts with the two operations 'doubling up' across many areas of the UK. What price for a strike by the Unions?
Share this..
Related stories
Payday loan companies still charging excessive rates of interest
The revelation that one particular UK payday loan company is charging up to 10,000% interest to some customers has again highlighted the difficulties which many people in the UK are experiencing at this moment in time. While there's no doubt that the UK regulators and the UK government have made substantial progress in reducing excessive rates of interest charged by certain companies in certain se...
Read MoreShould you still invest in the UK stock market?
There is no doubt that the last two years have seen many people lose significant amounts of money in the UK stock market. We have seen pension funds decimated, investments hit rock bottom and indeed many people have seen their nest eggs reduced to near zero. However even though many people are adamant that the stock market is not for them, we need to take a step back and consider exactly what the...
Read MoreWhy Are Investors Deserting Bradford And Bingley?
As the Bradford and Bingley saga continues to roll on there are many outside of the City who just do not understand what is happening at one of the UK's best loved mortgage lenders. The Group has arranged a £400 million rescue package, it has the backing of some of the largest institutions in the sector but the shares just keep falling and falling. Now down to 34p, against the 55p price at whic...
Read MoreUK banking commission announces investigation
The newly formed UK Banking Commission has today announced plans for a far-reaching investigation into the UK banking arena which will see many awkward questions asked regarding the risks and instability of the UK banking sector. There has been speculation for some time that the UK Banking Commission is targeting the breakup of large UK operations thus separating corporate finance divisions from r...
Read MoreRecession? What recession?
UK consumers are this month expected to withdraw around £10.6 billion from their bank accounts as the last minute dash for Christmas present continues. Despite the fact the UK is still officially in recession, it is believed that the December 2008 figure will be exceeded by over £600 million with on average £237,100 withdrawn every minute! The figures have been calculated using the time-hono...
Read More