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Signed and sealed
Prime Minister Gordon Brown has confirmed the acquisition of HBOS by Lloyds TSB Group Plc this morning, after meeting Lloyds TSB
chairman Victor Blank.
The £10.4 billion merger will see the two banks in control 28% of the UK mortgage market and 20% of bank checking accounts.
Personal finance experts are concerned that the merger will push up mortgage rates.
A collapse in the HBOS share price when the stock exchange opened at 8:00am led to fears that the bank - the biggest mortgage lender in the UK - was potentially going the same way as US financial giants Lehmann Brothers, who filed for bankcruptcy on Monday.
The share price has since partly recovered and talks are on-going.
Not worried
Customers leaving HBOS in Bridge Street earlier today seemed unfazed by the news, most totally unaware.
"I had heard something," one pensioner told us, "but I think my money is safe. I've been with the bank for years."
Another, who revealed he had recently lost his job, was happy to announce he ".... didn't have any money to lose, anyway!"
In August, the estate agency arm of the Halifax announced it was closing all its branches in Swindon in the coming months due to the downturn in the housing market.
On 08 September, the Swindon-based Nationwide announced it was taking over two smaller UK building societies who were encountering financial problems (see link below). |
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HBOS in merger talks with Lloyds - BBC website | |||||||
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