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Lloyds and HBOS

Why did Lloyds take over HBOS? Were they having difficulties in the recession? Was one performing better than the other? I cant seam to find the answer to this question online
Thanks
Jp
18:36 Fri 15th Oct 2010
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Buenchico		Best Answer
HBOS was suffering liquidity problems similar to those which caused the near-collapse of Northern Rock. The Government was desperate not to have to increase national borrowing in order to bail out HBOS, so it actively sought a buyer for the bank. Lloyds saw an opportunity to 'pick up a bargain' without the usual requirement to go through the various hoops...
19:03 Fri 15th Oct 2010 Go To Best Answer

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Buenchico
HBOS was suffering liquidity problems similar to those which caused the near-collapse of Northern Rock. The Government was desperate not to have to increase national borrowing in order to bail out HBOS, so it actively sought a buyer for the bank. Lloyds saw an opportunity to 'pick up a bargain' without the usual requirement to go through the various hoops normally put into place by the Monopolies Commission:
http://news.bbc.co.uk.../business/7622180.stm

Chris
19:03 Fri 15th Oct 2010
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jp_2031
Question Author
Ahh, that makes sense :D
Thanks chris :D
19:14 Fri 15th Oct 2010

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