You are here: Home - Saving & Banking - News -

Lloyds/HBOS merger divides opinion

Written by:

Lloyds’ agreed £12bn rescue plan for HBOS has attracted praise and criticism in equal share. After three days of turmoil in the financial markets threatened HBOS’ viability, the speedy takeover was welcomed by some as a necessary way of forestalling a run on the bank, and restoring some confidence in UK financial institutions.
Graham Spooner, investment adviser at The Share Centre said:
 “The merger between Lloyds TSB and HBOS should help bring some much needed stability to the financial sector, and will no doubt alleviate fears of a collapse for HBOS shareholders. We also expect the deal to improve confidence among customers and investors in the UK financial sector.”
HBOS shares rose 54% to 227p on the back of the takeover announcement. Lloyds shares fell initially but recovered and rose 18% to 300p.
However, some investors expressed concern. Richard Buxton, head of equities at Schroders, which owns a 2% stake in HBOS, said:
“Why does this need to happen? The Bank of England’s special Liquidity Scheme buys HBOS time. How does the deal benefit shareholders in HBOS and what if the short sellers turn onto Lloyds and then other banks?”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Rural residents spend rather than save

Almost a fifth of those living in the country are more likely to overspend each month than put some cash...