Profile: Eric Daniels - the quiet American

[Legal Beagles]

The chief executive of Lloyds TSB is cautious and contained, a far cry from the caricature of the brash American banker

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[righty]

Re: Profile: Eric Daniels - the quiet American

The problem with all these mergers & take overs is that we have fewer eggs in fewer baskets which could make matters much worse for consumers in the future................... plus what about the compensation issue........... will both need authorization or will both sets of customers who may bank with each lose their right to double compensation

[Paule]

Re: Profile: Eric Daniels - the quiet American

plus what about the compensation issue........... will both need authorization or will both sets of customers who may bank with each lose their right to double compensation

But I have an account with both banks. What then?
Under the terms of the Financial Services Compensation Scheme (FSCS), the compensation for savers in bust banks goes up to £35,000 per "authorised institution", not per account.
If a newly merged bank became just one authorised institution with the Financial Services Authority (FSA) then you would have cover for only the first £35,000 of your money, not more.
But banks sometimes retain their separate authorisations with the FSA after a merger, as in the case of the RBS and the NatWest

[righty]

Re: Profile: Eric Daniels - the quiet American

That's my point P

Are you sure about RBS & Nat West retaining separate authorization for the purposes of compensation. They certainly didn't in the case of the Halifax

[Legal Beagles]

More expensive mortgages on the cards after £15bn emergency rescue of HBOS by Lloyds

Homeowners and savers will pay the price for yesterday's emergency rescue of Britain's biggest mortgage lender.

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[ed.]

Re: Profile: Eric Daniels - the quiet American

Brown has just signed his death warrant.

[enaid]

Re: Profile: Eric Daniels - the quiet American

Yes once again the rules are going to be bent again to suit.

"It is thought the Government may waive competition rules to get the transaction through, and reportedly follows talks between Lloyds TSB chairman Sir Victor Blank and Prime Minister Gordon Brown. The Treasury and the Financial Services Authority (FSA) have also been involved."

Whichever way, good or bad for the consumer, I feel sorry for all those that will now become unemployed.

[Legal Beagles]

Higher mortgages and 40,000 job losses on cards after Lloyds TSB's £12bn rescue of HB

Homeowners and savers will pay the price for the emergency rescue of Britain's biggest mortgage lender.

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[Legal Beagles]

Banking crisis: Banks in crisis: Thousands of jobs to go as Lloyds TSB takes over HBO

Lloyds TSB confirmed this morning that is paying £12.2bn to take over HBOS, a deal that the City regulator believes will stabilise the financial markets. By Jill Treanor

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[Legal Beagles]

Fears of jobs losses and branch closures as Lloyds TSB agrees £12bn rescue of HBOS

There were fears of huge job losses and branch closures across the country today as Lloyds TSB confirmed its emergency rescue of Britain's biggest mortgage lender.

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[Legal Beagles]

Fears of jobs losses and branch closures as Lloyds TSB seals HBOS deal - but reveals

There were fears of huge job losses and branch closures across the country today as Lloyds TSB confirmed its emergency rescue of Britain's biggest mortgage lender.

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[Legal Beagles]

Lloyds/HBOS merger: What it means to you

What will happen to my bank account, savings, mortgage and local branch?

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[Amethyst]

Re: Lloyds/HBOS merger: What it means to you

Who is affected?

The merger could have an impact on millions of customers across all the HBOS group brands. These include the demutualised Halifax building society, the Bank of Scotland, another ex-building society Birmingham Midshires, the specialist mortgage provider Intelligent Finance, and the pensions and investment firm Clerical Medical.
As well as running savings accounts for Saga, Sainsbury's and the AA, HBOS also owns the upmarket asset management division St James's Place and Insight Investment. In addition, it is a large home and motor insurer, both through Halifax and brands such as esure and Sheila's Wheels.
Are my savings safe?

More so than they were yesterday. The merger is designed to shore up HBOS and protect the millions of savers who hold a combined total of £243bn in their accounts. Even if the new combined bank should fail savers would be protected under the Financial Services Compensation Scheme (FSCS). This was improved after the near collapse of Northern Rock last year and now covers 100% of the first £35,000 of savings you hold with any one institution.
I have savings in the Halifax and in Lloyds. What should I do?

Until the deal is done and dusted, which could take some months, the two banks will continue to be treated as separate institutions, so customers will get protection for the first £35,000 they hold in each. So you don't need to panic and move any money, unless you have more than £35,000 in one of the banks, in which case it would be prudent to move some. Even after the merger customers may still get protection for both sets of savings - it depends how they are authorised by the regulator.
Will I earn lower interest on my savings now?

Interest rates at Halifax/Bank of Scotland and Lloyds TSB are similar. The Lloyds TSB internet saver pays 4.41% compared with Halifax's 4.25% on its Web Saver. The Halifax brand is likely to continue in the short term, as will most of its products. However, in the long term there will be less competition in the market, which could mean lower rates for everyone.
What will happen to my mortgage?

HBOS was the largest retail mortgage provider in the UK with a market share of 20%. All of these customers will continue to repay their home loans as usual at the interest rate they previously agreed. However, the merger may not be good news for would-be borrowers.
While Halifax had committed itself to helping first-time buyers on to the housing ladder, Lloyds has operated a very prudent approach to lending through its Cheltenham & Gloucester brand. Now it owns HBOS it is likely to scale back lending through its brands. And again, the merger reduces competition in the market, which could ultimately push up rates.
What will happen to the property market?

If Lloyds does scale back lending it will become even harder for would-be buyers to raise funds. Falling demand for properties has already pushed house prices down by more than 10% over the past year, according to Halifax's own measure, and a lack of mortgages could lead to further falls.
I'm a HBOS shareholder - what does this mean?

HBOS has more than 2 million private shareholders, many of who received shares when Halifax became a plc in 1997 when they were worth 774p each. A year ago they were worth almost £10 but yesterday morning they dipped to 88p. Shareholders will receive 0.83 Lloyds shares for each HBOS one - this values HBOS shares at around £2.19.
I work at Halifax - is my job safe?

These are worrying times for HBOS's 60,000 UK employees. The Unite union says it is holding an urgent meeting with other unions at HBOS and Lloyds TSB, and says it will fight compulsory redundancies. But the reality is that Lloyds will be looking for substantial cost savings to finance the deal and that will inevitably take its toll on staff. This morning it said it believed significant cost savings could be made by combining the networks and back offices of the banks.
Does that mean branches will close?

Eventually, yes. Currently, Lloyds and HBOS have 3,000 branches between them, and in many towns there is a Lloyds branch and a Halifax or Bank of Scotland branch on the same street. Lloyds has said there will be an "elimination of branch duplication", so some will definitely go. It has been suggested that as many as 1,000 could close.
I bought a personal pension with Bank of Scotland Financial Services. How would I be affected?

Your pension fund is ringfenced and held in trust so if HBOS failed your nest egg is safe. This leaves aside the question of where your funds are invested - if your money is in a portfolio with a large exposure to banks then it will have fallen considerably already.

[Paule]

Acquisition of HBOS plc by Lloyds TSB Group plc

Lloyds TSB and HBOS announce that they have reached agreement on the terms of a recommended acquisition by Lloyds TSB of HBOS.

Under the terms of the Acquisition, HBOS Shareholders will receive 0.83 Lloyds TSB Shares for every 1 HBOS Share.

The offer values HBOS at £12.2 billion (based on Lloyds TSB’s closing price on 17 September 2008 of 279.75 pence).

Existing Lloyds TSB Shareholders will own approximately 56 per cent. of the issued share capital of Lloyds TSB as enlarged by the Acquisition and existing HBOS Shareholders approximately 44 per cent.

[Paule]

Re: Recommended acquisition of HBOS plc by Lloyds TSB Group plc

Welcome to the webcast of the presentation to analysts and investors. The live presentation that commenced at 10:00am (BST) on 18 September 2008 has now finished.

Presentation attached