I am hearing that this deal has been negotiated at a very high pay grade level, with the Prime Minister, Gordon Brown, talking to Sir Victor Blank, chairman of Lloyds TSB, about how helpful it would be if Sir Victor could bring himself to end the uncertainty hanging over HBOS by buying it.
As a Lloyds TSB customer of thirty years standing, I am considering moving my account just in case the Curse of Gordon strikes again. Best be safe, and all that.
13 comments:
An independent Scotland could not have saved HBOS, just as it certainly could not underwrite one, never mind all, of the Royal Bank of Scotland, Standard Life, Scottish Widows, and many others besides.
Scottish independence is a dead cause. Godd for Brown if he played any part in killing it. He is, after all, the Prime Minister of the United Kingdom.
The sad thing is that HBOS does not need to be saved - it is a sound bank. It's under threat because:
1) Speculators are selling it short to force the outcome they want (i.e. profit for themselves);
2) Jonah Brown doesn't want more Northern Rock scenes on the telly (though HBOS is no Northern Rock).
The idea of LloydsTSB taking it over is only for Jonah Brown's short term convenience, nothing else. At any other time such a merger wouldn't have a hope of being approved.
The easy solution to stop the hubris and stuff the speculating vultures is for the government to announce that HBOS is sound and that all deposits will be met in full - thus ending a media frenzy driven run on the bank before it gets underway.
Any other outcome will merely reward the vultures and enrich LloydsTSB, against the interests of British consumers and investors.
Move to Nationwide. They're pretty sound. I've been with them for over a decade.
You just know that they will push Gordon for tax payer guarantees - which he'll cave in and give because its not his money he's wasting and he's desperately weak.
If Broon presides over the demise of HBOS and RBS - i.e. the end of the Scottish Banks - Labour will never win Scotland again. And hence never win Britain.
I do wonder where Peston is getting his information from. For various reasons I have been following this story and the wild share movements for most of the day. Other than Peston's announcements on his blog there has been a lack of information generally. It was only later in the trading day that non Peston information started to come through in any meaningful manner.
It will be a customer service nightmare. Can you imagine the size of the call centres? Lloyds TSB also has operations in India so more jobs will go abroad. Less choice for consumers also.
And if they move the Head Office to London? I am gutted.
Yep, HBOS is an ideal target due to the last 3 characters - specs believe Gordon cannot bear to see it fail. I bet Gordo will ask it be kept as "Lloyds BoS"!
It is all about who blinks first - with Balls on your team, there is no hope!
Labour YET AGAIN shows how incompetent and incapable they are.
Unbelievable. I've just moved to Lloyds.
Iain, very irresponsible joke of your. Markets are people driven. You start spreading the idea Lloyds TSB is in trouble and it becomes a self fulfilling prophecy.
You journalists are always trying to spread panic for a cheap headline.
Iain, you want to be safe? Take ALL your money out of any bank and keep it under the mattress.
Think I'm joking? This is that bad - it'll make 1929 look like a walk in the park.
I switched my mortgage from HBOS to HSBC last month....phew!
This whole thing stinks. I reckon HBOS was talked down then taken over with government complicity - HBOS could have ridden out the storm.
Slash interest rates. Only sensible thing to do. It will make inter-bank borrowing cheaper and give us more to spend in the runup to Christmas, saving a few jobs perhaps.
oh bore on Iain! As a former Lloyds staffer, every bloody client always told you how long they had banked with Lloyds for. What difference does that make?
I've been reading your blog for 2 years - so what? Does that make me any better, or worse, than someone who only discovered your blog today?
You have become DISGUSTED OF TUNBRIDGE WELLS!
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