Lloyds TSB retains Bank of Scotland and Halifax brands
by Gill Montia
Story link: Lloyds TSB retains Bank of Scotland and Halifax brands
Lloyds TSB will keep the Bank of Scotland and Halifax brands, once its proposed merger with HBOS is complete.
In November the bank announced that the combined businesses would be known as Lloyds Banking Group but it has since decided to retain a multi-brand prescence on the High Street.
Other brands that will form part of the [...]
Interest rates fall in Eurozone, Sweden and New Zealand
by Gill Montia
Story link: Interest rates fall in Eurozone, Sweden and New Zealand
The 1% cut in the Bank of England’s base rate announced yesterday was accompanied by a record reduction in the key interest rate of the European Central Bank (ECB), which slashed rates by 0.75% in an effort to address the worsening economic outlook for the eurozone’s 15 economies.
The ECB’s main rate is now down to [...]
Base rate down to 2% but unsecured loans cost more
by Gill Montia
Story link: Base rate down to 2% but unsecured loans cost more
The Bank of England’s Monetary Policy Committee (MPC) has cut the base rate by 1% today, taking it down to a 57-year low of 2%.
The cut was widely predicted and followed a 1.5% reduction in November, since when ministers have upped their pressure on mortgage lenders to pass on the full extent of rate cuts [...]
Banking Code to have statutory powers
by Gill Montia
Story link: Banking Code to have statutory powers
New measures announced by prime minister Gordon Brown at yesterday’s State Opening of parliament mean that the voluntary banking code currently overseen by the British Bankers’ Association will be replaced by a statutory code.
The reform will expose banks and building societies to large fines if they fail to treat customers fairly by, for example, not [...]
Bank consortium rescues New Star
by Gill Montia
Story link: Bank consortium rescues New Star
New Star is being rescued by a consortium of banks that will take a 75% stake in the fund management firm.
Lloyds TSB, HBOS, HSBC, Royal Bank of Scotland and National Australia Bank are proposing a £240 million debt for equity swap in a move that will involve the firm delisting from the stock exchange.
Shareholders, who [...]
Lloyds TSB publishes charter for SMEs
by Gill Montia
Story link: Lloyds TSB publishes charter for SMEs
Lloyds TSB has published a charter in which it promises additional help for small and medium sized enterprises (SMEs).
The group’s commercial division deals with over 600,000 SMEs and says it wants to provide more certainty on overdrafts and loans.
The bank will therefore pass on in full any cuts in the Bank of England’s base [...]
Action group mounts legal challenge to Lloyds TSB / HBOS merger
by Gill Montia
Story link: Action group mounts legal challenge to Lloyds TSB / HBOS merger
A Merger Action Group (MAG) has been formed to bring a legal challenge to the proposed merger of Lloyds TSB and HBOS.
The takeover was announced in September, with the all-share deal approved by the Government, which was prepared to put aside competition issues to see HBOS rescued by its more stable competitor.
The merger has since [...]
Struggling credit card borrowers to get 30 days grace
by Gill Montia
Story link: Struggling credit card borrowers to get 30 days grace
Following yesterday’s meeting between credit card company chiefs and government ministers, a deal has been struck that means customers with large balances to clear should receive help more readily.
The cost of borrowing on credit cards has risen over the past year, despite cuts in the Bank of England’s base rate, which at its current [...]
BoE Governor sends warning shot on bank lending
by Gill Montia
Story link: BoE Governor sends warning shot on bank lending
The Governor of the Bank of England has sent a warning shot in the direction of UK banks that are benefiting from a taxpayer-funded bail out or Treasury guarantees but are not keen to increase their lending.
Speaking to the Treasury Select Committee this morning, Mervyn King outlined the danger of the UK economy entering a [...]
Lloyds TSB shareholders vote in favour of HBOS takeover
by Kay Murchie
Story link: Lloyds TSB shareholders vote in favour of HBOS takeover
Lloyds TSB shareholders voted on the proposed takeover of Halifax Bank of Scotland (HBOS) with 95.98% voting in favour of the deal.
Shareholders also approved proposals to raise £5.5 billion by issuing new shares and special preference shares.
The takeover will create a new banking giant called Lloyds Banking Group, which will comprise almost 150,000 staff [...]
uSwitch.com: Banks quick to cut savings rate
by Kay Murchie
Story link: uSwitch.com: Banks quick to cut savings rate
The Bank of England has made aggressive cut in interest rates in the last two months but lenders have been slow to pass on the reduction to consumers, until the Government intervened and some lenders finally caved in to the pressure.
However, according to a study by price comparison service, uSwitch.com, providers have cut their savings [...]
Old guard move in on HBOS / Lloyds TSB merger
by Gill Montia
Story link: Old guard move in on HBOS / Lloyds TSB merger
Former chief executives of Royal Bank of Scotland (RBS) and Bank of Scotland (BoS) have written to HBOS chairman, Lord Stevenson, calling for his resignation and that of his chief executive, Andy Hornby.
Sir George Mathewson (formerly of RBS) and Sir Peter Burt (formerly of BoS) are convinced that HBOS shareholders and staff will lose out [...]
Ex-HBOS chief secures £60,000 per month consultancy role
by Gill Montia
Story link: Ex-HBOS chief secures £60,000 per month consultancy role
One time chief executive of HBOS, Andy Hornby, will be employed as a consultant to the Lloyds Banking Group that is to be formed out of the merger of HBOS and Lloyds TSB.
The role will be remunerated by a £60,000 a month fee and the contract is for an undefined period, once the takeover is [...]
UKFI to protect taxpayers’ interest in banks
by Gill Montia
Story link: UKFI to protect taxpayers’ interest in banks
A new company has been set up to manage taxpayers’ interests in banks that are being bailed out under the Government’s £500 billion rescue plan.
So far three banks are asking for a combined £37 billion of new capital to survive the credit crisis.
UK Financial Investments Ltd (UKFI) has been tasked with maximising value for taxpayers [...]
Formation of Lloyds Banking Group puts 30,000 jobs at risk
by Gill Montia
Story link: Formation of Lloyds Banking Group puts 30,000 jobs at risk
Lloyds TSB’s announcement today that it intends to make annual savings of £1.5 billion through its merger with HBOS has sparked an angry reaction from trade unions, fearful of large-scale redundancies.
The latest estimate of cost efficiencies is £500,000 above an earlier £1 billion target and analysts are predicting that up to 30,000 jobs could go [...]
Lloyds TSB / HBOS outlines £17bn fund raising
by Gill Montia
Story link: Lloyds TSB / HBOS outlines £17bn fund raising
Lloyds TSB and troubled mortgage lender HBOS have announced further details of their proposed merger.
To fund the acquisition, Lloyds TSB will raise £4.5 billion of capital via an issue of 2.6 million new shares to existing shareholders, at a discounted price of 173.3p.
At the same time, HBOS will raise £11.5 billion, £8.5 billion of which [...]
Lloyds TSB / HBOS deal may face counter bid
by Gill Montia
Story link: Lloyds TSB / HBOS deal may face counter bid
The Government-approved merger between HBOS by Lloyds TSB could be under threat, as news of a possible rival bid emerges.
Scottish businessman and former HBOS executive, Jim Spowart, has reported he has been approached by an international finance company with an interest in acquiring HBOS.
According to Mr Spowart, the company has already made an approach to [...]
BoE report puts global toxic asset writedowns at £1,800bn
by Gill Montia
Story link: BoE report puts global toxic asset writedowns at £1,800bn
The Bank of England has published new estimates of the amount of so called toxic debt that has been written down by global financial institutions, in relation to the credit crisis.
In its Financial Stability Report, the Bank puts the figure at £1,800 billion, adding that the size of its estimate of the collective writedowns facing [...]
Lloyds TSB chief tells staff bonuses will be paid
by Gill Montia
Story link: Lloyds TSB chief tells staff bonuses will be paid
The chief executive of Lloyds TSB, Eric Daniels, has told his staff that where bonuses are due, they will be paid.
Last week, the bank, which is in the process of negotiating a merger with HBOS, announced that it would raise £4.5 billion of capital by selling new ordinary shares underwritten by the Government.
Along with its [...]
Treasury concessions on dividend payments expected
by Gill Montia
Story link: Treasury concessions on dividend payments expected
Reports in the media suggest that the Treasury will reduce the length of time that shareholders of bailed-out banks are starved of dividends.
The Government’s £37 billion rescue plan, which involves the part nationalisation of Royal Bank of Scotland (RBS) and Lloyds TSB / HBOS, came with strings attached including a ban on dividend payments until [...]
