Lloyds names Co-op as preferred buyer of bank branches

meatandtwoveg

http://www.bbc.co.uk/news/business-16174571

Lloyds says its preferred option for the sale of 632 bank branches is to sell them to the Co-operative Group.
The mutually-owned Co-op had been in competition with new bank venture NBNK for the assets.
Lloyds will now enter exclusive talks with the Co-op, which runs a financial services division along with a supermarket retail arm.
It comes as Lloyds said boss Antonio Horta-Osorio was to return to work from sick leave on 9 January.
All Cheltenham & Gloucester branches and all Lloyds TSB Scotland branches are earmarked to be sold.
In addition, a selection of Lloyds TSB branches in England and Wales would be transferred to the Co-op.
Taking over the Lloyds retail branches would give the Co-op the chance to become Britain's seventh-biggest bank.
It is hoped that a deal will be concluded by the end of the first quarter in 2012.
Lloyds is selling a business with an estimated 4.6% of the UK current account market. It includes 632 branches, £36bn of deposits and about £47bn of mortgages and loans.
It is being forced to sell the branches by European Commission competition authorities.
Currently, Lloyds is 41%-owned by the UK taxpayer.
'Full recovery'
Mr Horta-Osorio has been on extended leave because of a stress-related illness.
Independent medical specialists and the board have been investigating what led to the 47-year-old's absence.
The bank's chief financial officer, Tim Tookey, temporarily took over as chief executive in Mr Horta-Osorio's absence.
Big investors had been generally impressed with Mr Horta-Osorio's performance before he was forced to bow out.
Lloyds' most important shareholder is UK Financial Investments, which looks after the taxpayers' stake in the bank.
Sir Win Bischoff, Chairman of Lloyds Banking Group, said: "The board and I are pleased that Antonio has made a full recovery.
"We are looking forward to his return after the New Year to continue to lead the group and build on the strong progress he has already made in transforming the business and delivering the strategic plan."

Robisere

Thanks, Meaty!

That throws up a nightmare scenario for the Big Bucks Banks: an ETHICAL, environmentally-aware, mutually-owned financial institution, respected and trusted by the majority of the British banking public. Muscling into their cosy, cash-bloated, overpaid, super-compensated world. Bring it on!

But will it happen?

Robisere

"The mutually-owned Co-op had been in competition with new bank venture NBNK for the assets."

Google NBNK, and check out the board of NBNK: -

Our Board

Lord Levene of Portsoken KBE
(Chairman)
Lord Levene is the current Chairman of Lloyd’s, the world’s leading insurance market, following his election in November 2002. He is also the Chairman of General Dynamics UK Limited and a member of the Board of China Construction Bank and Haymarket Group. He is the Chairman of International Financial Services London (formerly British Invisibles) and is a member of the House of Lords Select Committee on Economic Affairs. He is an Alderman of the City of London and served as Lord Mayor for the year 1998/99. Lord Levene has served as Vice Chairman of Deutsche Bank and has held the position of Chairman of Bankers Trust International.



Sir David Walker
(Deputy Chairman and Senior Independent Director)
Sir David Walker is a senior adviser to Morgan Stanley International Limited where he has previously held the position of Chairman. Sir David has also held roles including Deputy Chairman of Lloyds Bank, Non-executive Director of National Power and was an Executive Director of the Bank of England. In 2009, he was appointed by the then Prime Minister to review corporate governance in UK banks and financial institutions in light of the experience of critical loss in the financial system.



Lord Brennan of Bibury QC
(Non-executive Director)
Lord Brennan is a member of the House of Lords. In 1999 he was Chairman of the Bar of England and Wales. He is also Chairman of the Caux Round Table Global Governing Board and Chairman of Juridica Investments Limited. His special interests include international development and financial and corporate governance, in particular in connection with the recent financial crisis.



Lord Forsyth of Drumlean
(Non-executive Director)
Lord Forsyth is a member of the House of Lords and sits on the House of Lords Select Committee on Economic Affairs. He was an MP for Stirling from 1983 until 1997. He served in Government for more than 10 years as Secretary of State for Scotland, as a Minister of State at the Home Office and Department of Employment and as Parliamentary Private Secretary to the Foreign Secretary. In 2007 he joined Evercore Partners as Managing Director in its corporate advisory division. Before joining Evercore Partners he was a Director of Corporate Finance at Flemings, Vice Chairman Investment Banking Europe at JPMorgan and Deputy Chairman at JPMorgan UK. He is a Non-executive Director of J&J Denholm Ltd and of the Centre for Policy Studies and from October 2005 to October 2006 he chaired the Tax Reform Commission.



Lord McFall of Alcluith
(Non-executive Director)
Lord McFall is a member of the House of Lords. He was an MP for West Dumbartonshire from 1987 until he stood down at the recent General Election. During that time he held various positions in both opposition and Government and, for the last nine years of his time in the Commons, was Chairman of the Treasury Select Committee. His special interests include regeneration and community development as well as foreign affairs and international development.



Gary Hoffman
(Executive Director)
After graduating from the University of Cambridge, where he read Economics, Gary’s career began at Barclays when he joined the graduate trainee scheme in 1982. Throughout his time with Barclays he had responsibility for service and sales to Barclays’ retail customers in the UK. Gary set up Barclaycall, (the telephone banking service) and launched the company’s internet banking service. He held several senior and Board-level customer focused roles at Barclays, which included responsibility for UK Banking and Barclaycard. Gary was latterly Vice-Chairman of Barclays plc from 2006-08, before agreeing to take on one of the toughest challenges in retail banking when he joined Northern Rock in 2008 as Chief Executive and was responsible for its rescue, stabilisation and restructure. In July 2008 Gary received an Honorary Doctorate from the University of Northampton, having been made a Visiting Professor in 2007.


Does all that sound familiar?


Same carp, different title. Same establishment figures, same probable outcome. In a world where we can check them out like that, why do these people continue to believe that we are all stupid?


Kudos to Lloyds for once, for deciding to go with the Co-op Bank.

JuicyJesus

Robisere wrote: »

Thanks, Meaty!

That throws up a nightmare scenario for the Big Bucks Banks: an ETHICAL, environmentally-aware, mutually-owned financial institution, respected and trusted by the majority of the British banking public. Muscling into their cosy, cash-bloated, overpaid, super-compensated world. Bring it on!

But will it happen?

The Co-op are not too dissimilar from the other banks on most things. Their executive receives a large pay packet and bonuses; its branch staff are typically on retail wages; it operates much the same charging policy and follows broadly the same interest rates as other banks. It does have an ethical investment policy, yes; so do some other banks, albeit not as loudly trumpeted. Their customer satisfaction ratings are close to all the others (bar First Direct and Nationwide) also. It also happens to lag behind the others on various issues - its systems still cannot provide an accurate available balance except through an ATM, and it dragged its feet on implementing Faster Payments to the point of comedy.

In short, they're not too different. If you fall behind on your mortgage they'll still repossess your house, if you're late with a credit card payment they'll still charge you. They're still a profit making enterprise, mutual or not (as anyone who's seen the prices in one of their food shops/glorified corner shops will attest).

On the plus side, its debit cards are a very pretty blue colour.

meatandtwoveg

Yep, i hope the OAP's are harassing their local MP's pushing for the CO-OP. It seems C&G is a long term favourite of the purple rinse brigade, spoke to regional manager, she said they like the old fashioned values we have, a passbook, so they can see their hundreds of thousands they have saved there in black and white................36 billion of savings deposits C & G, 47 million mortgage book, thats a pretty healthy balance.....I think the CO-OP will get it..........

alanq

Competition for current accounts maybe but not great news for savers. Britannia/Co-op interest rates on savings accounts have not been competitive recently.

jennifernil

What options do Lloyds customers who do not wish to be sold to anyone have?

rb10

jennifernil wrote: »

What options do Lloyds customers who do not wish to be sold to anyone have?

1. Put up with it; or

2. Close your account.

jennifernil

Can I not move my accounts to a branch in England?

JohnR

Is there a list of the branches which are to be transferred?

MoneySaverLog

I just called Lloyds up, my branch is not affected by the sale and will remain with Lloyds.

I think the only option if your branch is being sold is to transfer / or open a new account at a branch that is not affected.