The long-term impact of the Lloyds Banks merger with HBOS
As the UK government takes a firm step backwards with regards to the Lloyds bank and HBOS merger, despite allegations that the UK government interfered in the transaction, there appear to be long-term consequences for former directors of Lloyds bank. The first head to roll will be that of Sir Victor Blank, the outgoing chairman of Lloyds bank, who was ushered out of the door due in the main to the disastrous HBOS merger which has cost Lloyds bank billions upon billions of pounds.
Incoming chairman Win Bischoff is said to be under immense pressure to clear out the old guard from the Lloyds bank era and bring in a number of government friendly faces to run the enlarged business. While officially there has been no comment from Lloyds bank regarding any changes in directorships it is well-known that those closely involved with the HBOS merger, for which the board of directors have since taken full responsibility, still remain under extreme pressure even though their chairman has taken most of the public flak.
As a consequence of the HBOS merger, Lloyds bank was forced to give away a 43% stake in the operation for a £17 billion bailout investment by the UK government. The old conservative reputation of Lloyds bank has disappeared in a puff of smoke and the operation has lost the respect of many analysts and investors in the city.
Share this..
Related stories
Car insurance set to rocket in 2009
With news that car insurance premiums rose by 11% in 2008 the AA has put drivers on red alert for a similar rise in 2009. There would appear to be a number of issues which have come into play over the last 12 months and which could continue for some time to come. The average annual premium for comprehensive car insurance increased by 1.3% in the first three months of 2009 and now stands at just ov...
Read MoreThe UK economic collapse : lesson one
There are many factors which have affected the UK economy over the last 18 months but one of the major impacts has come from the regulatory operations within the UK. For many years a number of analysts have been suggesting that the UK system was to "lax" as the so-called "self-regulatory" system allows UK financial businesses to have far too much influence on the ongoing regulatory framework.
Read More
UK pension squeeze is on the way
A report by AXA has confirmed that the UK pension industry, despite having a difficult decade, is set for further trouble in the future. It would appear that more than three in five UK citizens are looking to rely upon the state pension as their main source of income in retirement, as the private pension sector continues to decline and more and more workers are withdrawing from pension schemes. So...
Read MoreFashion retailer New Look coming back to the market
Six years after being taken private by founder Tom Singh and two private equity companies, British fashion retailer New Look has announced plans to raise £650 million to reduce debts and give the company the opportunity to expand at home and overseas. This is the first major IPO for some time and will be seen as a barometer of investor appetite for new share issues. While the controlling parti...
Read MoreUK gas bills hit a record high
It is estimated that the average quarterly winter gas bill for UK households will be something in the region of £616 having been boosted by £120 due to the cold snap at the beginning of 2010. This 20% increase in the average gas bill will see many people pushed into energy poverty spending more than 10% of their monthly income on their utility bills. So where will it all stop? In a nightmare...
Read More