Taxpayer to own 44% of Lloyds 'super-bank'

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Taxpayer to own 44% of Lloyds 'super-bank'

Mon 12th Jan 2009

UK taxpayers will own around 44 per cent of the 'super-bank' which will be created by Lloyds TSB's takeover of HBOS, it has emerged.

As shares traded for below the expected prices on Friday, shareholders in the two individual banks had little incentive to buy shares in the new merged operation for the asking price, leaving the government to make up the fundraising shortfall.

The new combined bank, which will become known as the Lloyds Banking Group, will have the largest market share in mortgages, current accounts and savings accounts when the deal goes through on January 19th.

Lloyds TSB agreed to buy HBOS after the mortgage giant, which includes Halifax and the Bank of Scotland, looked set to go bust last October.

The government decided to waive monopolies legislation which would normally require the 'super-bank' to be investigated by the competition commission, in order to stave off a banking collapse which could have been disastrous for the economy.

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