Lloyds TSB Split

pqrdef

JuicyJesus wrote: »

Your terms and conditions say otherwise. Can't be arsed to dig out the Lloyds TSB terms right now but they will say something along the lines of "blah blah we can assign our rights and responsibilities under this agreement to someone else blah blah".

Well obviously a bank in difficulties can't just transfer a load of its liabilities to another company, created for the purpose of going bankrupt, and then carry on with a much improved balance sheet.

A bank might like to think of its customers as business assets, but customers aren't just fees and charges, and their deposits are liabilities.

LTSB couldn't do this under normal contract law, they had to get special approval from the courts, after canvassing objections. I don't know what statute that came under, but it's a very dubious bit of law. If we hadn't got FSCS, there might have been a lot of objections, on the grounds that there was no guarantee TSB would be solvent and viable.

stclair

If you open a TSB account now will it actually be TSB branded or will they just rebrand it afterwards.

jonesMUFCforever

stclair wrote: »

If you open a TSB account now will it actually be TSB branded or will they just rebrand it afterwards.

At the moment it will be LloydsTsb until separation sometime in August/September I think.

MoneySaverLog

Will the new owner keep the TSB brand name or will they change it again?

stclair

MoneySaverLog wrote: »

Will the new owner keep the TSB brand name or will they change it again?

Their keeping it for now. I'm actually quiet looking forward to seeing TSB on the high street again.

jonesMUFCforever

If you like the TSB brand that much it looks like you will get the oportunity to buy some shares when it is floated on the stock exchange.

JuicyJesus

stclair wrote: »

Their keeping it for now. I'm actually quiet looking forward to seeing TSB on the high street again.

I'm looking forward to the OMG WHAT DOES THE TSB CARD LOOK LIKE threads that are going to be all over this forum like genital warts in a few months' time.

Lith

On the website, it says my Lloyds TSB branch won't be sold off...

so what does this mean ? i will stay with Lloyds then ? or Lloyds TSB still be around or ...??

JuicyJesus

Lith wrote: »

On the website, it says my Lloyds TSB branch won't be sold off...

so what does this mean ? i will stay with Lloyds then ? or Lloyds TSB still be around or ...??

You're staying with Lloyds, who will rebrand as Lloyds Bank.

System

It used to require a private Act of (the Westminster) Parliament but I believe it was also added to the Financial Services and Markets Act 2000 and this process is more commonly used.

The transfer of the Lloyds TSB accounts to Lloyds TSB Scotland was approved by The Court of Session on the 27 March 2013.

pqrdef wrote: »

Well obviously a bank in difficulties can't just transfer a load of its liabilities to another company, created for the purpose of going bankrupt, and then carry on with a much improved balance sheet.

A bank might like to think of its customers as business assets, but customers aren't just fees and charges, and their deposits are liabilities.

LTSB couldn't do this under normal contract law, they had to get special approval from the courts, after canvassing objections. I don't know what statute that came under, but it's a very dubious bit of law. If we hadn't got FSCS, there might have been a lot of objections, on the grounds that there was no guarantee TSB would be solvent and viable.