Investors turn against Lloyds bank directors
It is rumoured that the UK Shareholders Association has taken legal advice regarding the Lloyds bank acquisition of HBOS and significant losses incurred by a number of investors. It is no secret that the Lloyds bank and HBOS merger, mooted as one of the best fits in the industry, has fallen apart over the last few months and seen Lloyds bank take on significant bad debts from its new subsidiary. As a consequence many shareholders are now nursing severe losses and looking to take legal action against Lloyds bank directors although on what grounds remains to be seen.
Prior to the HBOS acquisition, Lloyds bank was one of the more conservatively run UK banking operations and one which many investors believed would could come through the ongoing recession in relatively good shape. However, the government induced HBOS merger was put forward as a rescue bid for the company and the sector but has severely impacted upon Lloyds bank in the short term. Whether Lloyds bank directors have in any way acted inappropriately regarding HBOS merger has not been proven but no doubt we will hear both sides of the story if the prosecution ever reaches court.
This is not the first and it will not be the last time that UK investors look for financial compensation as a result of share price performances during the recession.
Share this..
Related stories
Faster banking delayed
The introduction of a system that will deliver faster banking and enable same-day money transfers over the phone and internet has been put back until next May. The scheme, which will allow payments to be made in a matter of hours, was due to start in November, but the Association of Payment Clearing Services (Apacs) has had to delay the project, blaming the complexity of the task in hand. Paul Sme...
Read More£386 to watch a wedding
The average guest at a British wedding will spend a total of £386, with many people underestimating the amount they spend as it is spread out on gifts, outfits and pre-nuptial celebrations.According to CreditExpert website, stag and hen nights are the most expensive factor when attending a wedding, costing around £130 on average to celebrate the last night of freedom.Wedding gifts set guests bac...
Read MoreFlood risk Housing could see Prices Plunge
Over 200,000 homes in the UK could become uninsurable, and subsequently unmortgageable, because of their susceptibility to flooding. An agreement, which is set to expire next June, has ensured that even homes in the highest risk flooding areas across the UK can obtain buildings and contents insurance, if the Government promises to spend more improving flood defences. However this deal between...
Read MoreBank of England cuts economic growth forecast
The Bank of England has today reined in its economic growth outlook for the UK with a suggestion that it may take up to two years for inflation to fall back below the 2% level and UK economic growth is unlikely to peak at 3.6% in the short to medium term but could peak at 3%. While these reductions in growth forecast do not go as far as many analysts had expected, they do show that the UK economic...
Read MoreHow long before the government disinvests bank share stakes?
Even though the UK government is looking to dispose of a number of share stakes in the likes of Lloyds bank, Royal Bank of Scotland, Northern Rock and Bradford & Bingley prior to the next general election, there are creeping suspicions that this may not be possible. The very fact that the potential sale of substantial share stakes has already leaked into the marketplace has in many ways put a cap...
Read More