Lloyds TSB and HBOS to merge

baby_boomer

It needs the approval of Lloyds shareholders and the market was betting that this would be a problem.

Why would Lloyds shareholders, as opposed to bosses with an eye on honours and increased salaries, want to burden themselves with unquantifiable HBOS problems?

It now looks like it is off because there is a story that the government will become a 70% shareholder in HBOS on Monday, i.e. effectively nationalise it.

This is good news for Lloyds shareholders. The point of a crisis is to weed out the weak, not cripple the strong(er) banks in the process.

catz747

Is it good news for HBOS customers or do I start thinking about shifting my ISA money out of there?

baby_boomer

It's already guaranteed by the government. And if the government is a 70% shareholder I guess that strengthens the guarantee?

456789

So Llloyds shareholders have voted in favour and HBOS will likely do the same

Once the merger happens what will happen to my accounts? I currently have a student current, 2 savers, an isa and a credit card with HBOS - will they get converted into the equivalent Lloyds TSB account? Is it definate that in towns where there are branches of both banks one will close? or will it be similar to how Abbey and A+L operate owned by the same company but still separate?

sutton111

They will most likely remain seperate at least for the time being. RBS own Natwest but they are run seperate as well.

firsttimestudent

I was wondering, during the Natwest and RBS merger, did the bank force those with credit accounts on both banks to close down one of their credit acounts?

I am slightly concerned as I have a Halifax Student Account (£2750 OD, which I use to stooze a lot) and Halifax One card (£1800 limit, used quite a lot due to current 0% interest rate) - and a LTSB Classic Plus (£200 OD, never used) and LTSB Airmiles Duo (£1400 limit). When they merge, will they say, ask me to close down one or two of the accounts, as suddenly, the amount the (combined) bank lends to me relative to my credit suddenly becomes twice as large?

Paul_Herring

When they merge, will they say, ask me to close down one or two of the accounts, as suddenly, the amount the (combined) bank lends to me relative to my credit suddenly becomes twice as large?

They could do that before by simply looking at your credit reference report. It's unlikely they'll reduce/close them purely because they merge.

bert&ernie

firsttimestudent wrote: »

I was wondering, during the Natwest and RBS merger, did the bank force those with credit accounts on both banks to close down one of their credit acounts?

I am slightly concerned as I have a Halifax Student Account (£2750 OD, which I use to stooze a lot) and Halifax One card (£1800 limit, used quite a lot due to current 0% interest rate) - and a LTSB Classic Plus (£200 OD, never used) and LTSB Airmiles Duo (£1400 limit). When they merge, will they say, ask me to close down one or two of the accounts, as suddenly, the amount the (combined) bank lends to me relative to my credit suddenly becomes twice as large?

Most banks have some kind of maximum exposure rule i.e. across the group they should only lend you up to a certain amount. this is likely to be in the region of £30K or more, so I wouldn't worry if I were you.