Bank takeover 'cannot be undone', says Chancellor

By Daniel Culpan

Chancellor George Osborne has said the Government won't "unwind" the takeover of HBOS by Lloyds, which was carried out during the 2008 banking crisis.

According to the Guardian, Mr Osborne also seemed to downplay suggestions that Lloyds might be forced to sell off more branches in an effort to comply with the proposals of the Independent Commission on Banking, which raised the idea that the bank needed to sell more than the 632 branches which the EU demanded.

Mr Osborne told MPs: "I'm confident that the divestment of the Lloyds branches will help create that strong independent challenger" that Sir John Vickers, chairman of the Commission, is looking for.

During an appearance before the Treasury Select Committee, the Chancellor was questioned about whether the Lloyds-HBOS deal should be undone. He responded: "No, I don't and neither does the Independent Commission on Banking. I don't think it is possible to break apart the Lloyds/HBOS deal."

Tags: bank, banks, banking, Lloyds, HBOS, Independent Commission on Banking, Guardian, banking sector, takeover, George Osborne

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