Lloyds could be forced to sell Halifax brand

by Richard Kilner

Story link: Lloyds could be forced to sell Halifax brand

Reuters has reported that the future of Lloyds Banking Group, the banking giant formed by the hurried takeover of HBOS by Lloyds TSB, may be in jeopardy.

The news agency has stated that a ruling by the EU Commission could see the forced break-up of the bank resulting in the total or partial sale of the Halifax brand.

However, Lloyds is reluctant to relinquish the well-known Halifax brand, and is thought to prefer a compromise whereby a large number of branches could be sold off instead of the entire Halifax brand.

Lloyds Banking Group soon fell into difficulty after acquiring HBOS, and is now 43% owned by the taxpayer.

Earlier this month the bank dropped out of the 50 safest banks list of Global Finance Magazine, and in August the firm posted a £4bn loss for the first six months of 2009.