Competition Rules To Change For Banking Merger

Legislation is to be modified to make-way for one of the biggest banking mergers in recent times.

The Chancellor has confirmed the Government will amend current competition laws to allow the merging of Lloyds TSB and HBOS.

Alistair Darling said the move would go ahead in the interest of UK financial stability.

Britain's financial authorities have recognised the need for the move, according to Mr Darling.

The merger was announced earlier this morning, following a sudden drop in consumer confidence in Halifax HBOS yesterday.

The bank saw its share value fall dramatically, only to rise again when talks of a Lloyds TSB merger were revealed.

Current competition laws would prohibit the merger of the two large banking groups, who together will hold around a third of the UK's banking customers.

However, Mr Darling said adjustments to competition rules would be "in the interests of consumers and the wider economy".

"The current circumstances in the financial markets are truly exceptional. In recent days the financial markets across the world have seen an unprecedented level of uncertainty," the Chancellor said.

He said the Government would act quickly to change the legislation under Section 42 of the Enterprise Act, which allows it to extend the grounds for considering public interest.


Related UK National News Stories
Click here for the latest headlines.

21 January 2009
Another 'Super Bank' Merger
Two large banking groups have agreed on a merger that will see the formation of a 'super mutual'. Co-operative Financial Services will be combined with Britannia Building Society in a deal that will affect more than 12,000 employees, in over 300 branches and 20 corporate banking centres. It is reported the combined group will have £70bn ($98.
28 July 2014
FCA Fines Lloyds Banking Group £105m
Lloyds Banking Group has been fined £105m for serious misconduct relating to the Special Liquidity Scheme (SLS), the Repo Rate benchmark and the London Interbank Offered Rate (LIBOR).
27 May 2014
TSB Flotation Announced By Lloyds Bank
Lloyds Banking Group has said it is to float a 25% stake in its TSB business on the London stock market. The sale will take place next month and ordinary investors will have an opportunity to purchase shares. These ordinary investors will be rewarded with free shared for longer-term investments, it is understood.
06 March 2014
Shell Wants Scotland In The UK
Ben van Beurden, the Chief Executive of the oil company Shell has said he would like Scotland to remain part of the UK. In a meeting in London he said he valued the "continuity and stability: of the UK and affirmed that the company had studied the possibilities and reached the conclusion, which was supported in the UK and UE.
14 June 2013
Deputy Gov Of BoE To Stand Down After 33 Years
The Deputy Governor of the Bank of England, Paul Tucker, is to step down from his post at the financial institution. Tucker, who has been at the bank for 33 years, was one of the candidates to succeed Sir Mervyn King as Governor.