HBOS & Lloyds TSB in merger talks

19 September 2008

HBOS (Halifax Bank of Scotland) and Lloyds TSB have announced that they are in talks about a possible merger worth £30bn.

The move would end uncertainty about the strength of HBOS (amongst others in the credit and loans markets), following a run on its shares in the past week.

It comes as the effects of the credit crunch begin to hit the economy deeply, with US investment bank Lehman Brothers filing for bankruptcy and insurance company AIG receiving an $85bn rescue package from the US Treasury.

A spokesperson for Think Money said: “If the merger goes ahead, those involved in the loans market might breathe a sigh of relief.

“The run on HBOS’ shares, left alone, could have effectively ruled out any other institutions doing business with them, and that would have caused a further limiting of liquidity in the credit market. Hopefully, this move will limit any further damage.”

---

Think Money offer a range of loans. If you are looking for a loan, contact one of our advisers now.

Our initial advice on your best financial solution is free. Fees payable when continuing service is provided. Calls may be recorded for training and quality purposes.