HBOS announce £8 billion of bad debts ahead of Lloyds merger vote

HBOS Plc (LON:HBOS) the troubled bank is just hours before a vote will be announced over its merger with Lloyds TSB (LON:HBOS) have announced its bad debt and other losses have jumped to £8 billion in just two months.

Shares in HBOS plunged over 19 percent on the profit warning from the UK bank, the ailing economy sent October and November retail and corporate debts through the roof.

In a statement HBOS talked of how the increasing unemployment and the global market crisis will be the biggest challenge to the credit environment, with analysts reporting that corporate loans are being badly affected by the deteriorating economy.

HBOS is in desperate need of the Lloyds takeover and it is widely expected that the vote today will be in favour of the deal.

Source: Reuters Warrior Angels divx

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