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Bank merger could bring further losses

12/12/2008

A merger between Lloyds TSB and HBOS is under consideration today - should the deal go ahead as many as 60,000 jobs could be lost.

Estimations vary, although the Scotsman has said between 20,000 and 60,000 jobs will have to go.

Lloyds' shareholders have agreed the move, which is yet to be confirmed, as HBOS' shareholders are to vote on it today.

Critics of the deal, the Merger Action Group (MAG), had its objection to the merger thrown out by the Competition Appeal Tribunal.

Expecting the worst, spokesperson Malcom Fraser yesterday told the Times: "I hope by our actions we have encouraged others to look for other solutions."

Lloyds TSB has said it was committed to a multi-branding strategy, whereby it retains the names of lesser banks absorbed in the deal.

It announced its branches in Scotland will adopt the Bank of Scotland title.

An HBOS spokesman responded saying: "We believe the multi-branding strategy being adopted by the group is the right one."

 

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