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Sunday 8 November 2009

Just remind me who wanted to bring HBOS and Lloyds together?

The Times's reveals that:
"LLOYDS BANKING GROUP is being kept afloat with £165 billion of loans and guarantees from the Bank of England and other central banks around the world, The Sunday Times can reveal.

The bank’s reliance on state funding, detailed in a document released last week in connection with a separate £21 billion fundraising, gives the first insight into the huge scale of aid extended to banks during the financial crisis.

The document says the bank is still “heavily reliant” on government funding. Lloyds also says it would face a “materially higher refinancing risk” if it was not available.

The scale of Lloyds’ dependency has surprised analysts, but they say it shows just how big a financial timebomb it has become. The support is nearly equal to the £175 billion of UK government borrowing to be raised this year, and almost as big as the Bank of England’s £200 billion quantitative easing programme. "
Shocking but do remind me whose idea Lloyds takeover of HBOS was?

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