Lloyds TSB to take over HBOS?

[R129mine]

I hope it does'nt come off, mainly because I hate Lloyds with a passion. I switched my bank accounts and my mortgage from Lloyds to Halifax a couple of years ago cos they ****** me off so much, so now it looks like I'm gonna have to shift again

same here, banked with lloyds for many years and was not a happy bunny. luckily my bank account is not with Halifax but my mortgage is, not sure if it makes much difference on a mortgage account but if I had my current account etc with halifax i would move them

 

[Mudster]

It's unlikely this merger will have any effect on exisiting savers or borrowers. It's unlikely you'll even get a stationary change for some time, it's likely to be referred to as a "Group" of companies.

However consider this......between LloydsTSB and HBOS they have 33 million customers........in a country with a population of 60 odd million....that's very scary indeed to any other bank on the outside looking in and why all the "this wouldn't be allowed to happen in normal circumstances" comments are being aired..

 

[Dieselman]

However consider this......between LloydsTSB and HBOS they have 33 million customers........in a country with a population of 60 odd million....

Is that an accurate figure of what they will have or is that the combined figure of the customers they have at present. they MAY have a number of customers that have accounts with both banks, which would reduce the total sum when one provider.

If it's the sum total of individual customers, then It's significant.

 

[Bobby Dazzler]

Integration costs will be huge with a capital FFFF, but there's potential for cost reduction on the back of it. Integration will be minimisedl until things pick up though.

 

[Dieselman]

HBOS isn't even running as one unit yet, so maybe keeping individual trading names isn't much of an issue. They will still be large enough to govern the market and people will think there is competition and still be dealing with 'comfort' brands.

Halifax is well known for mortgages, maybe LloydsTSB wouldn't attract as many customers.

 

[Mudster]

Is that an accurate figure of what they will have or is that the combined figure of the customers they have at present. they MAY have a number of customers that have accounts with both banks, which would reduce the total sum when one provider.

If it's the sum total of individual customers, then It's significant.

That's a combined figure of both banks current holdings. I'm sure there will be a percentage of cross accounts but even if that's as high as 10% it's still a frightening amount of market share.

 

[AndyS]

That's a combined figure of both banks current holdings. I'm sure there will be a percentage of cross accounts but even if that's as high as 10% it's still a frightening amount of market share.

Apparently mergers and aquisitions would never normally have allowed this to happen but basically they had to in this case as HBOS was in genuine danger of going under..

IMO its the Northern Rock effect, as soon as people hear that a bank is in trouble they all take their money out - can't blame them really - all of a sudden gold looks interesting - although its only just on its way up after having been on a downer..

 

[recycled]

I think a home made underground vault would be the next option.

 

[carnut]

IMO this is far from a "done deal"

as it wont happen til next year, it needs shareholder approval and things can change in that timescale,its not realy neccessary, and if it did go through it would probably demerge later ( at what cost to HFX customers!?) as the monopolies guys will, probably along with both the Govt and the banking industry, not want to have such a colossus with all those (nest)eggs in one basket!

This is just a maneuver to settle the market and to be seen to do something

 

[Mudster]

It's pretty much done and dusted to be honest, by accounts on the news last night the Prime Minister was brokering the deal over a week ago.

What Shareholder is going to say No? We'll swap your shares for LloydsTSB shares or they become worthless......errr...where do I sign?

 

[st4]

It's pretty much done and dusted to be honest, by accounts on the news last night the Prime Minister was brokering the deal over a week ago.

What Shareholder is going to say No? We'll swap your shares for LloydsTSB shares or they become worthless......errr...where do I sign?

Apparently some major institutions (schroders) who hold HBOS are against it as they think HBOS will recover. It is rumoured they may well say no.