Committee of MPs blame Lloyds Bank for HBOS debacle
Despite the fact that Lloyds Bank was invited to make an offer HBOS by the UK government, an influential committee of MPs has decided that Lloyds Bank directors were directly at fault for any issues which have arisen since the takeover. This despite the fact that Gordon Brown personally intervened and was highly influential in bringing together Lloyds Bank and HBOS to create what would have been the U.K.'s largest banking company by a long way.
Even the Lloyds Bank and HBOS together will dominate the UK banking sector for some time, there has been substantial fallout with regards the merger, the costs associated and the significant write-downs. All in all it would appear that Lloyds Bank, whether under pressure from the UK government or simply in a rush, did not appreciate the full extent of the demise of the HBOS business and the potential write-downs which have become apparent since the agreement was signed.
However, it is worth noting that without a takeover, HBOS would have been left high and dry and could potentially have pulled down the whole UK banking sector with it. While the billions of pounds spent on the takeover, both by Lloyds Bank shareholders and the government, may seem like a high price to pay to retain some kind of confidence in the sector, in many ways there was no other choice.
Share this..
Related stories
Euro under pressure as dollar heads higher
As the situation in Greece, Portugal, Spain and other Eurozone economies continue to worsen there is increasing pressure on the Eurozone which has seen the dollar and sterling move higher. Despite the fact that the euro was put forward by many as the future "golden currency" it has come in for severe criticism and severe pressure over the last few days. There are serious concerns that Greece, P...
Read MoreCredit card holders urged to prepare for cancellations
Credit card holders should brace themselves for more companies following the example of Egg, an expert has warned. Last week, 161,000 Egg customers received notification that their credit cards are to be cancelled in 35 days from receipt of the letter. The move came after the lender conducting a review of its clients in the wake of the credit crunch.Egg's actions have attracted widespread opprobri...
Read MoreWealth gap 'at 40-year high'
The gap between the rich and poor in Britain has reached a 40-year high, according to a new report.An analysis of wealth and poverty trends across the country between 1968 and 2005 concludes that people living in affluent areas have become "disproportionately" wealthier than individuals living elsewhere.There is also evidence of "increasing polarisation" between the rich and poor, warns the report...
Read MoreMortgage market 'to get steeper' for less well-off
Recent events affecting the global credit market will mean that the less well-off will find it harder and harder to find a mortgage, according to a spokesperson for Credit Action, a charity offering financial advice and training.The collapse of the sub-prime market has had effects on the credit climate around the globe, with many lenders now opting to be more cautious in who they hand out cash too...
Read MoreGordon Brown targets low-income families
In a move which many feel is a return to the Labour Party's grassroots it has been announced that Gordon Brown is looking at tax cuts for low income families. It has been rumoured that up to £15 billion worth of tax cuts are on the horizon although as yet there is no confirmation of the government's plans.
The move to assist the low-income families of the UK should reduce the numbe...