Former Chief Executive of RBS hits out at HBOS

Former Royal Bank of Scotland (RBS) Chief Executive Sir George Mathewson and former Chief Executive of Bank of Scotland Sir Peter Burt have both attacked the HBOS board of Directors insisting that CEO Andy Hornby and Chairman Andy Hornby should hand in the resignations, the HBOS board have rejected the bold move.

Sir George who stepped down from RBS in 2006 and Sir Peter have put into place a shareholder revolt, claiming that it would be a wrong move for Lloyds TSB to take over HBOS and that it would be better to keep HBOS independent and that the two former banking chiefs should take over the control of HBOS.

If they win the support of the holders it will give them control of HBOS on a temporary basis, Sir Peter and Sir George both believe that the Lloyds TSB merger worth £12 billion is no longer needed after plans for a government cash injection plan was accepted. The merger of the two huge banks has given rise to concern of massive job losses as well as shareholder being sold short.

Source: Telegraph