The considered, precise view on the Halifax (HBOS) rescue by Lloyds TSB can be found on a good story carried by FT.Com http://www.ft.com/cms/s/0/d7fa43e0-8496-11dd-b148-0000779fd18c.html?nclick_check=1. This blog will muse on what was the glory of an UK mortgage bank with a balance sheet of £600bn.
For instance, the share price performance of Halifax was pretty dire and signalled major operational shortcomings. It must have been dire to consider a merger, sorry a takeover by Lloyds TBS, a bank, which has grown by mincing companies. Halifax board members and executives will know that they will not have much of a future in the combined group unless a leopard has changed its spots.
www.searchaccountant.co.uk
Founded in 1853 at the Old Cock Inn in the Yorkshire town of Halifax, the institution grew from a building society to a major financial group cemented with the acquisition of Bank of Scotland to form HBOS. I did have the shares from the demutualisation of the building society but had to sell at around £4 due to household necessities. I also had a current account, which paid excellent interest but I was getting disturbed by sales calls from Halifax staff trying to sell insurance etc.
For many years Halifax was in competition with Abbey National, which is now owned by
Banco Santander of Spain. Ironically, Lloyds TSB tried to acquire Abbey National in 2002 and now must be having a wry chuckle with the start of the process to buy the Halifax, which has a market leading 20 per cent of UK housing loans.
Apparently, UK Prime Minister Gordon Brown has been involved in the negotiations since the deal will get a waiver from competition problems. However, I don't know what the European Union will think of that. Yet, speed is required for the transaction to go ahead and I don't think the British government would be interested in nationalising Halifax following its rescue of Northern Rock.
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