HBOS/Lloyds TSB merging

notatroll

232p per share – i simply cannot believe these Lloyds power people are such idiots.

I was pretty sure of sub 50p takeover.

Why would they pay that much if HSBC was not even competing?

The way this takeover was presented/handled makes me think it was someone’s huge blunder.

Oh, well.

rajajang

esbo wrote: »

I have been playing with Bank Of LLOyds and HalifaX of Scotland:-

BOLLOXS :rotfl::rotfl::rotfl:

BOLLOXS LAND

CamalSquid

im just panicing at the mo about this lloyds/HBOS merger, can you please tell me what would happen to my savings that I have in the Halifax if they DO merge, I have over 35K , will I loose out? sorry if this question has been asked before.

robpw2

But I have an account with both banks. What then?
Under the terms of the Financial Services Compensation Scheme (FSCS), the compensation for savers in bust banks goes up to £35,000 per "authorised institution", not per account.
If a newly merged bank became just one authorised institution with the Financial Services Authority (FSA) then you would have cover for only the first £35,000 of your money, not more. But banks sometimes retain their separate authorisations with the FSA after a merger, as in the case of the RBS and the NatWest


http://news.bbc.co.uk/1/hi/business/7620744.stm

for all other questions look here this is really useful;



camalsquid ithis has been answered

your money is safe as bank is not failing but i would suggest you skim anything more than 35k and move it to another bank

you can get some 6% deals

CamalSquid

Thank u so much for replying so quickly, I did open a Barclays account yesterday, but I was worrying about the time it took for the cheque to clear from Halifax to Barclays.
Im Liking the sound of 6%, I'll have a good search on the net later.

I can go back to bed now and sleep.

opinions4u

Here's a few musings on the subject:

1) Don't worry about the £35k limit between Lloyds and HBOS being merged. Until the banking licences are merged too, each organisation will retain their own limit. After the merger completes, they would be mad to also merge the banking licences in the current climate as this would lead to a number of people feeling obliged to walk away with £35k from one organisation or another. With wholesale funding markets as they are, this is not something they should consider in the short to medium term.

2) Will they, like RBS/NatWest, continue trading under the existing brand names? Retaining the Bank of Scotland brand north of the border would seem to be a significant advantage as the Scots like to feel something is theirs, not English. Ideally, from a competitive point of view, the government should insist on brand identity being retained as this will enable the OFT or other bodies to more easily enforce a sale of a brand in future should the new group abuse market position. Systems and premises costs make a quick fire merger of branches and high street brands unlikely.

3) To reduce market share, the authorities should enforce the sell off of brands like IF and Sainsburys Bank.

4) In 2007 Lloyds had a cost income ratio of 45% and HBOS 40% (from memory). While obviously the reduction in profits from the credit crunch will impact on these figures, neither organisation is full of fat. These are two lean banks with limited customer cross-over between brands. Therefore talk of 40,000 job losses sounds on the high side. That said, merger of private banking operations, marketing and life assurance companies does still provide an opportunity to reduce structures in size and cost.

More will no doubt become clearer as the morning progresses.

Any thoughts?

(Since adding this article Lloyds have said "the tie-up would lead to cost-savings that would enable the firm to boost its earnings by about £1bn a year by 2011" - that's 40,000 jobs at £25k, so may be not so high side!).

Fella

Just my views:

1. Is useful info, they should go out of their way to publish that.

2. I'd be surprised if they didn't keep the brands, all 4 brands from each institutions previous mergers/takeovers still exist!

3. If Lloy haven't got guarantees from the Gov that they WON'T face harsh regulation post-merger then they are utter fools. They are bailing out the GOVERNMENT here, not HBOS. The Gov should be agreeing to any terms Lloy ask for.

4. The two separate organizations may not have had much fat but practically every high st I know has branches of both. I think huge reductions in branches & staff are inevitible.

sabretoothtigger

Both lloyds and hbos prices are falling back this morning..

NSN1968

Going back to the point about the two banks licences being merged and consequently cutting our FSA protection if we have savings in both banks...

I understand that they may not merge the licences while the economic climate is as it is but if they do become one authorisation, will we be informed or do we need to keep our eye on it?

Thanks, Neil.

sabretoothtigger

They are so big they'll still be different I think, it'll be in the news otherwise I think

If you own both shares you will only have to pay 1 commission charge to sell now, roll on the efficiency savings