Lloyds TSB rescue of HBOS: thousands of jobs to go

As Lloyds TSB completes its £12.2 billion rescue of HBOS, the new colossal British bank will head straight into Britain’s first recession in two decades.

Eric Daniels, Lloyds TSB’s chief executive said that the rumour that the takeover will create 40,000 job losses is incorrect and to high, he added that the bank will be looking to save £1 billion a year in costs.

In the last 48 hours HBOS and Lloyds TSB thrashed out a deal, amid the biggest financial crisis in decades and backdrop of HBOS’s tumbling share price. HBOS share holders will receive 0.83 Lloyd’s shares.

Mr Daniels, who has overnight become the most powerful man in British banking, refused to say how many branches he will close and how many staff will lose their jobs.

It’s not been decided yet what name will be used for the group, but it’s been reported that the groups will continue to hold a strong presence in Scotland.

Read the full article in the telegraph