Written by LloydsTSB have been duped into buying HBOS so the Government didn’t have to bail HBOS out themselves. Please bear in mind that LloydsTSB without HBOS actually made a profit last year. LloydsTSB have always been a frugal bank ensuring their risk is managed properly.
I can’t help thinking that when the initial takeover was agreed, the government promised the world to Lloyds, then after the takeover was announced, whipped everything away again.
As soon as the economy recovers, the group will have to be split up to ensure there is no monopoly – in a stable economy, the takeover would not have been allowed by the monopolies commission. And when the bank is split up, you can bet your life that it will be customers and shareholders that miss out.
The taxpayer now owns 65% of the Lloyds Group and I am extremely concerned about my parents. As a retired Lloyds manager, my Dad’s pension could be severely screwed if the government don’t keep their incompetent noses out.
What people don’t realise is that the Equitable Life pension collapse was caused by the government’s interference and policy changes. Equitable Life was operating without a problem, then the government wanted to ensure x amount of a financial company’s wealth was kept in ‘safe’ assets such as bonds to ensure there was always enough money to cover payouts. This in itself was fine, but they had to comply in a ridiculously short amount of time bearing in mind it meant a complete change in their business practice.
Anyway, I digress. I just hope the government let the management get on with sorting this mess out – after all they managed to orchestrate a profit when all around them posted massive losses. Note to Government – keep your noses out.
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