HBOS / LLO TSB Merger - Opinions

dempsey05

The reports have been saying how happy Gordon Brown is, hardly surprising really is it, somebody else steps in so he doesn't have to lose even more credibility and worry about whether he'll have to do it himself. This might be a really stupid question but will it effect Lloyds' AAA rating? I don't know the credit status of HBOS and how it all works.

jscalow

I too am a member of staff with Lloyds tsb and my department fulfils a role that will be duplicated already in hbos- there will be absolutey no need to have two separate depts doing the same thing- we may need more staff to fill the combined role in one larger dept but we certanly wont need two. I know that the hbos funtion is operated in the north of the UK where as I am on the south coast where office space and staff cost more. Doesn't take a degree in economics to work out what is coming.

minimike2

dempsey05 wrote: »

We are worrying enough at the moment about whether we will be losing our jobs right now so people hoping that Lloyds 'get rid' of C&G is a little insensitive right now. Brokers can annoy me sometimes (I said sometimes before you flame me ) but I would never wish that they were gone and out of jobs because of it.

I don't mean to sound on my high horse and I know you will get comments from all perspectives here but I just needed to get it off my chest.

I wouldnt want the C&G staff to lose thier jobs.....I would want them put into the Halifax / BM / BoS / IF mortgage channels.....thier bloody call centres take ages to answer and underwriting has started to take a long time, they could use the extra manpower.

I never use C&G anyway because they are so appauling. I just saw someone tonight who was moaning about them becuase they feel "ripped off" by them flogging them insurance they they have now got elsewhere for 66% cheaper. Its the same at all the banks.....you cant argue with it, its fact....Lloyds took over C&G as a lead in for more insurance sales, at astronomical rates. The mortgages take a back seat as long as the insurance sales come in, it doesnt matter what its service is doing. Same with Woolwich / Barclays. Two of the biggest names in mortgages, bought out by banks, with the worst service records, yet highest levels of insurance sales (with loaded premiums). You cant argue with fact, and thats why brokers have the opinions of these lenders.

I just hope that it doesnt go the other way and C&G replaces the HBoS mortgage setup.

Andreg

Another disastrous knee-jerk reaction from Gordon Brown and Alistair Darling. 40000 job losses, 1000 branch closures and a huge loss of competition in the mortgage market. With less competition banks will be able to jack up their mortgage rates and force homeowners to pick up the tab for the banks foolish lending. Homeowners who cant afford to pay will have to sell up into a falling market.

The Bank of England special liquidity scheme was meant to protect banks from this and should have been beefed up if it was really necessary.

This time next month the media will be discussing the next risky bank and the cost of mortgages will be higher. House price falls will accelerate and more banks will start running low on capital. Taken to its logical conclusion, we will be left with all the mortgage banks in the country merging into one giant bank, so big that the government is forced to guarantee it, and with no competition so it can charge what it likes.

Tiddler_2

Just been on the news that the "Boards have spent the day battling out the discussions" - more like battling to find jobs for themselves - these same board members have been paying themselves huge bonuses over the last few years - Andy Hornby will probably go back to running a supermarket.

I feel sorry for the staff at both banks, but particularly my former colleagues at the Halifax, where staff were encouraged to invest their 10% bonuses (not much when you're only on £12k - £15k p.a) into sharekicker schemes - and this on the back of a horrendous year for those in the Estate Agents just trying to do their jobs and earn commissions by selling properties.

The thing is who will be the next target?

If there is a good thing in this it may be that some of the monopoly money men in the City will have lost millions through their short-selling games - something which should be outlawed

dempsey05

Minimike, I work in a branch not a call centre and appreciate your point on insurances, I have my own opinions on which are worth paying for and which aren't with us but I'll keep them to myself. The customer has a choice on whether to take the insurances at the end of the day and yes it's about sales but you can hardly do an advised mortgage without recommending insurances where there is a need apparent. All banks do the same, there are alot of brokers who also make their money from the insurance side, I agree that you get better advice with insurance from brokers as they have a larger market they can source.

Also the experience a broker gets can vary from a direct customer's as you're usually dealing with different teams as branches don't process the cases anymore (I realise you already know this so not trying to sound patronising.) I appreciate your point, that's why we still help brokers in our branch, we have a good strong relationship with many of them and realise the shortfall in service they have been receiving from the intermediary team. I guess it depends who you deal with unfortunately.

dempsey05

I wish the mortgages did take a back seat too but the pressure on targets is for mortgages much more than the insurance sales right now as they are in such short supply. I do get your point though and agree with alot of what you say.

ormus

lloyds will pay 232p for each hbos share. that seems way over the top to me. lloyds were in the driving seat, they could have done a much better deal for themselves.
im assuming that will be in shares not cash?
you must feel sorry for the 40000 jobs though.

dempsey05

Will they keep separate protection for investors like RBS/Natwest do you think? I think that will be one of the biggest concerns for customers.

itsnothing

I work in a halifax branch 3 doors down from lloyds, we wont be staying and im ever more annoyed as I just got promoted.... i WAS supposed to be starting my new role this monday coming well thats going to be called off now!
Do any halifax staff know what is going to happen with these new free shares we were just issued, going to have to say bye to those as well I guess! Your best point of contact is your union rep as we get updated quite a bit throughout the day (have been the last two days).