Lloyds bank looks to slim down HBOS acquisition
It has been revealed that Lloyds bank is looking to dispose of up to 60 separate share stakes acquired by HBOS over the years. While these investments have done fairly well for HBOS in recent times, the enlarged group is looking to focus on more traditional banking and trying to alleviate any significant risk in other areas. There is also the issue of liquidity and financial strength which has been in the headlines of late after various stress tests were carried out across the UK financial sector.
Lloyds bank has gone from being one of the most conservatively run UK banking operations to a one which needed to approach the UK government for rescue funding. Even though Lloyds bank, in its old form, would still have suffered during the ongoing UK recession there is no doubt that the HBOS acquisition has dragged the company down to new lows. There has also been significant blood-letting in the boardroom and directors with decades of experience in the industry have been jettisoned in favour of more modern and in some cases "government friendly" representatives. It will take Lloyds bank many years to retain the reputation it had enjoyed for decades, confirming that the good work of years gone by has been decimated over the last few months.
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