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Uncertainty surrounds Lloyds TSB's 200 branches in Scotland after its government-brokered takeover of HBOS, which owns Halifax, goes through next month.
The combined bank will use only the Bank of Scotland brand on the high street in Scotland, which means that the 200 branches currently displaying the Lloyds black horse will either have to be rebranded, shut down or replace an existing BoS branch.
The takeover - which is expected to see the taxpayer end up with a stake of over 40% in the enlarged group - has caused controversy, particularly in Scotland. But giving the Bank of Scotland brand such prominence on the high street may help to allay some local fears.
Brokered by Gordon Brown to try to prevent HBOS from collapsing, the deal still faces a challenge next Monday and Tuesday at the Competition Appeal Tribunal, in a case brought by Scottish businessmen. They will argue that the move should not have been cleared by the competition authorities.
The enlarged group will have 3,000 branches across the UK - more than any other bank - but is expected to close those where there is overlap. It insists no decision has yet been made on how many branches will close or how many jobs will lost from the 140,000 workforce. There are persistent rumours that 40,000 jobs are at risk at what will be known as Lloyds Banking Group, although these have been denied by Lloyds.
Decisions are still to be taken about all the brands that the Lloyds stable will own following the merger. It is still not clear what will happen to Lloyds' C&G mortgage brand or its Scottish Widows insurance business or HBOS operations such as Insight, Clerical Medical or Birmingham Midshires.
The group announced, though, that the major names Lloyds TSB, Bank of Scotland and Halifax would all survive in some form. While Bank of Scotland will replace all the other brands in Scotland, it will not be used on the high street in Wales or England, where Lloyds TSB and Halifax will both be used. It has not yet been decided whether the Bank of Scotland Corporate brand will be used outside Scotland.
Eric Daniels, Lloyds TSB chief executive who will run the combined bank, said: "Lloyds TSB is committed to a multi-brand strategy for its banking business. We believe that our brands are the strongest in the UKretail financial services sector and we are very focused on growing and developing them. Lloyds Banking Group will have the largest branch network in the United Kingdom which means we will be able to provide an even higher level of service to our customers."
The Unite union insisted it would fight any compulsory job losses. Derek Simpson, Unite joint general secretary, said: "The union's priority remains the job security of the hard-working staff who have worked tirelessly to ensure that both financial institutions continue to deliver an excellent service to their customers.
"We will also fight to ensure that no branches are closed in areas where they are currently the last bank locally. Unite will be pressing for meaningful consultation on any possible business changes.
"It is vital that management do not forget the impact of any changes on all the stakeholders, including: staff, local business and communities. Unite the union will not accept any compulsory job losses."
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