Lloyds TSB and HBOS Merger: Up to 40,000 could lose their jobs

Lloyds TSB (LON:LLOY) takeover of HBOS (LON:HBOS) could see 600 branches close and up to 40,000 jobs as the two banks merge to create the a UK superbank.

As the recession looms over the industry and the Lloyds and HBOS deal completes Mid-January the new merged bank titled Lloyds Banking Group will have to resume dividends, lift capital ratio and begin to shrink its balance sheet. Investors in Lloyds will be wanting a quick return to core strength after the government closes the deal between the two banks.

HBOS warned its investors if the merger does not go ahead the bank could end up being full nationalized so it is likely they will pass the deal on Friday at the shareholders meeting, Lloyds TSB shareholders already voted 96 percent in favour for the deal to go ahead weeks ago.

Source: Reuters