After days of speculation it appears that finally we may be about to see some action on the HBOS and Lloyds TSB merger. Two highly respected Scottish bankers have written to the HBOS chairman and chief executive asking for them to resign and allow them to replace the leadership of the group. Sir Peter and Sir Anderson George Matheson, both former executives in the banking industry believe that they can not only save HBOS from being taken over but also increase any potential return for taxpayers.

This potential management change seems to have the backing of both the Scottish government and a number of key figures in the Scottish financial industry. However, it is not clear whether there is any support amongst shareholders of HBOS or indeed the UK government is willing to consider such a radical move.

Many financial experts believe that the criticism of the current offer brings into question the wholehearted support which has been offered by the UK government in regard to the Lloyds TSB and HBOS merger. Whether it is too late and too complicated to unwind the original deal remains to be seen but the more uncertainty regarding HBOS the less beneficial this is to the future of the operation.

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