Did the UK government push Lloyds Bank into acquiring HBOS?
While Gordon Brown has today issued a statement confirming that he has "no regrets at all" with regards to his intervention to speed up the takeover of HBOS by Lloyds bank many are concerned at Gordon Brown's role in the affair. This comes at a time when Lloyds Bank is looking at losses approaching £10 billion from the newly acquired HBOS operation. When the merger of the two operations was initially leaked to the press there had been speculation that the government had "leaned" on Lloyds bank to come to some arrangement with the HBOS management and shareholders. Whether this is true or not is very much open to speculation................
Despite initially looking as though it was a match made in heaven the ongoing economic crisis in the UK together with the delay in concluding the merger has left Lloyds Bank shareholders with a massive liability. Nobody close to the deal had expected HBOS to announce a loss in the region of £10 billion with a seemingly swift collapse in the company's corporate loan book. There is no doubt that Lloyds Bank has been "holed below the waterline" and there is a real danger that the company may need further funding assistance from the government in the short term.
Was Gordon Brown too "eager" to conclude the Lloyds Bank/HBOS merger?
Share this..
Related stories
Will companies take advantage of the stock market rise?
Barratt Developments is set to launch a £700 million fund raising exercise, the funds from which will be used to shore up the company's balance sheet. There are also rumours that rival housebuilder Redrow is also considering such a move at a time when share prices have remained fairly buoyant despite the fact that underlying balance sheets and in some cases trading is still very difficult.
...
UK drivers waste £700 million a year
12/05/2015 Motorists who leave their engine running and are heavy on the accelerator are collectively losing £700 million a year, new research from Barclaycard Fuel+ has shown. The report has shown that the average driver could save £84 a year by driving more economically; making sure the car is in the right gear and not speeding. The survey showed that one in three UK drivers do not u...
Read MoreMore and more stock market companies looking to shareholders for rescue
The last few days have seen a sudden surge in the number of UK stock market listed companies looking to raise more funds from shareholders and effectively rescue the business. A mixture of falling demand and increased debt servicing costs are seeing more and more companies hit the financial buffers and resort to desperate tactics to raise funds. The entertainment and leisure industry seems to be t...
Read MoreUK government announces plans for banking carve up
The UK government has today announced plans to force Lloyds bank and Royal Bank of Scotland to disinvest themselves of various banking networks over the next four years as a means of increasing competition in the UK banking sector. This will see more companies operating in the UK financial sector but is seen by many as a case of trying to pre-empt EU Commission conditions with regards to state aid...
Read MoreIs bankruptcy a real option for those in trouble?
In days gone by bankruptcy was a process which attracted a stigma which was for many people difficult to shake off. However, bankruptcy laws have changed in the UK over the last few years and ultimately bankruptcy is now a real option for those who are in financial trouble. The government and the regulators have realised that some businesses and some people in the UK have done and continue to f...
Read More