Bankers object to HBOS merger

10/11/2008

Two Scottish financiers are plotting to derail the merger of HBOS and Lloyds TSB - a move which could save jobs from being lost.

Sir Peter Burt, the former chief executive of Bank of Scotland, and Sir George Mathewson, ex-chairman and chief executive of Royal Bank of Scotland, have made public their desire to keep HBOS independent.

Tens of thousands of jobs could be lost by the planned bank merger, as the two financial firms combine operations and cut overall branch numbers and office staff.

Both HBOS and Lloyds TSB are to benefit from the government's £37 billion sharebuying scheme, which will see public money used to protect the financial stability of the banking system.

In a letter to HBOS, the two bankers point out that this plan was announced after the merger plans - and suggest that the government money renders the deal pointless.

"In light of the availability of new capital from [the government] for HBOS, the takeover is no longer necessary to ensure financial stability," the letter said.

Lord Stevenson, HBOS chairman, said that the bank had rejected the approach.

Tags; Job loss, Credit Card Lifestyle, Recent Graduate Debt,

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