Lloyds TSB confirms takeover of HBOS

Earlier this week banking giant Lloyds TSB confirmed the emergency takeover of the nation’s largest mortgage lenders, HBOS, in an emergency rescue plan that has been rushed through and approved by government officials.

The £12.2 billion takeover has raised huge concerns over job losses and branch closures across the nation, and has also created a super bank that officials state could change the face of British banking forever. As part of the merger one billion in annual costs needs to be cut by 2011.

It is feared that the takeover could result in around forty thousand job losses. In the meantime the government is said to have thrown out the rule book in terms of competition so that the takeover could go through smoothly.

One official from Lloyds TSB said: ‘Significant cost savings can be made by combining the networks and back offices of Lloyds TSB and HBOS.’ He confirmed that there would be some job losses but said that the figure of forty thousand being banded around on the news seemed on the high side. He also stated: ‘I don’t think there should be the impression that this is a shotgun marriage. This is something that has been looked at for a good long while,’