FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

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

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue