Lloyds faces multi-million pound losses on Kilmartin collapse
by Gill Montia
Story link: Lloyds faces multi-million pound losses on Kilmartin collapse
Lloyds Banking Group could be facing substantial losses over the collapse of Kilmartin Holdings.
The Scottish property developer has been placed in administration with debts to HBOS in the region of £500 million.
Kilmartin built a reputation as a major UK developer, working on projects across the country including Wynyard Business Park in Teeside and a waterfront [...]
Banks keen to develop one-stop shop approach
by Gill Montia
Story link: Banks keen to develop one-stop shop approach
Financial products analyst, Defaqto, is convinced that larger banks and building societies are increasingly focusing their sales efforts on existing customers, seeking to cater for all their financial needs.
The firm’s banking specialist, David Black, comments: “We’ve already seen banks focusing their unsecured lending on existing customers but now there is the beginning of a [...]
Lenders advised to focus on commercial mortgage books
by Gill Montia
Story link: Lenders advised to focus on commercial mortgage books
A new report from CB Richard Ellis (CBRE) warns lenders that they should be focusing their attention on the quality of the UK commercial properties against which loans were secured during the last few years.
The study, entitled “UK Commercial Real Estate Debt – a Two-Tier Market”, claims over half of the outstanding debt is due [...]
Lloyds shareholders take legal action against Chancellor and BoE governor
by Gill Montia
Story link: Lloyds shareholders take legal action against Chancellor and BoE governor
Shareholders of Lloyds Banking Group are taking legal action against Bank of England governor, Mervyn King, and Chancellor of the Exchequer, Alistair Darling.
Lloyds Action Now spokeswoman and former BBC Watchdog presenter, Alice Beer, says the group is proposing to ask the High Court to establish whether Mr King and Mr Darling have acted beyond their [...]
BoE made secret loans of £61.6bn to RBS and HBOS
by Gill Montia
Story link: BoE made secret loans of £61.6bn to RBS and HBOS
At the height of the financial crisis the Bank of England was forced to prop up Royal Bank of Scotland (RBS) and HBOS with loans totalling £61.6 billion.
The emergency funding was needed during October and November of 2008 to maintain the stability of the UK financial system and “prevent a loss of confidence spreading through [...]
Halifax / Bank of Scotland review overdraft charges
by Gill Montia
Story link: Halifax / Bank of Scotland review overdraft charges
Halifax and Bank of Scotland are introducing new charges for current account customers and withdrawing interest payment on accounts that are in credit.
From 6th December, the banks will apply flat charges of £1 per day for agreed overdrafts of up to £2,500 and £2 a day for agreements over £2,500.
For those with unarranged overdrafts, the [...]
Halifax slashes unauthorised overdraft charges
by Gill Montia
Story link: Halifax slashes unauthorised overdraft charges
Halifax is following a lead set by Royal Bank of Scotland earlier this month and will be reducing charges on unauthorised overdrafts.
Currently, customers who go overdrawn without permission pay £35 for each bounced transaction but from 6th December the penalty reduces dramatically, to a blanket £5 per day.
In addition, customers with authorised overdrafts will pay [...]
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 [...]
Lloyds considers sale of branch networks
by Gill Montia
Story link: Lloyds considers sale of branch networks
Mindful that it could fall foul of EU regulations, Lloyds Banking Group is reported to be offering to sell two of its regional branch networks.
The government-brokered takeover of HBOS by Lloyds TSB last September flouted UK competition rules and left Lloyds Banking Group 43% state-owned.
The European Commission is still considering the terms of the merger [...]
Lloyds poised to close 300 Halifax “counters”
by Gill Montia
Story link: Lloyds poised to close 300 Halifax “counters”
Hundreds of Halifax outlets could be axed as the integration of Lloyds TSB and HBOS continues.
According to reports, the merged Lloyds Banking Group is considering the closure of over 300 agency “counters”, which are operated under licence by third parties such as solicitors and estate agents.
The counters offer only a limited range of Halifax services [...]
Which? exposes banks’ online security blunders
by Gill Montia
Story link: Which? exposes banks’ online security blunders
Which? Computing has been highlighting the gaps in security that put online banking customers at risk.
According to the consumer group, standards vary widely and some High Street names have been found wanting.
For example, when it comes to log-in procedures, Abbey and Halifax have far to go; First Direct, Lloyds TSB, Nationwide, NatWest and RBS qualify [...]
Lloyds’ chairman surprised at HBOS losses
by Gill Montia
Story link: Lloyds’ chairman surprised at HBOS losses
The chairman of Lloyds Banking Group has admitted that the pace at which HBOS’s losses have mounted has come as a surprise.
Speaking to the BBC, the outgoing Sir Victor Blank described the losses as “at the worst end of expectations”, adding that when the merger was announced in September of last year it felt like [...]
Lloyds Banking Group posts £4bn first-half loss
by Gill Montia
Story link: Lloyds Banking Group posts £4bn first-half loss
Lloyds Banking Group has posted a pro-forma loss of £4 billion for the first half of 2009.
The pro-forma format of the results has been adopted to reflect the impact of the acquisition of HBOS by Lloyds TSB and allows for certain adjustments.
Consequently a pre-tax profit of £6 billion has also been reported for the [...]
Lloyds shareholders call PM to account on HBOS merger
by Gill Montia
Story link: Lloyds shareholders call PM to account on HBOS merger
The Lloyds Action Now group is demanding the release of notes on key conversations that took place between Prime Minister Gordon Brown and Lloyds TSB chairman, Sir Victor Blank, in connection with the takeover of HBOS.
The doomed merger, which was announced in September, has left the resultant Lloyds Banking Group 43% state-owned because of losses [...]
Lloyds facing colossal first-half writedowns
by Gill Montia
Story link: Lloyds facing colossal first-half writedowns
Lloyds Banking Group could be faced with writing down up to £13 billion for the first six months of 2009, The Sunday Times has reported.
According to the newspaper, the 43% state-owned bank is facing huge loses on its commercial property, business and mortgage books.
In 2008, the troubled group’s HBOS subsidiary posted a £10.8 billion loss [...]
No proof of income on up to 80% of HBOS mortgages
by Gill Montia
Story link: No proof of income on up to 80% of HBOS mortgages
A former employee of HBOS has claimed that prior to the credit crisis up to 80% of the group’s mortgage applications were accepted without full proof of income.
Michael Bolton was once managing director of BM Solutions, a specialist lending unit of Birmingham Midshires that deals with intermediaries.
Speaking to Money Marketing magazine recently Mr Bolton explained [...]
Court rules in bank’s favour in “phantom withdrawal” case
by Gill Montia
Story link: Court rules in bank’s favour in “phantom withdrawal” case
A UK court has found against a customer who sued his bank after being held liable for withdrawals from cash machines, which he claims he did not make.
So called “phantom” withdrawals occur when money is withdrawn at bank ATMs without the card holder’s permission and where card details have not been revealed to third parties.
Chip [...]
Lloyds shareholders to sue bank
by Richard Kilner
Story link: Lloyds shareholders to sue bank
A company is to be set up by angered Lloyds TSB shareholders at 11.45 am on Friday June 5 in Glasgow.
The launch time has been picked specifically to coincide with the AGM of Lloyds Banking Group Ltd, formed after the controversial merger between Lloyds TSB and struggling bank HBOS.
Lloyds Action Now Ltd has been created [...]
Lloyds Banking Group cuts 530 more jobs
by Gill Montia
Story link: Lloyds Banking Group cuts 530 more jobs
Lloyds Banking Group is preparing for a further round of job cuts, trade union Accord has reported.
Around 530 posts are to go across the UK; a Halifax processing centre near Chatham in Kent will close with the loss of 210 jobs; 30 posts will disappear in London and the same number in Birmingham.
In April, the [...]
Lloyds’ shares under pressure on fears of EU intervention
by Gill Montia
Story link: Lloyds’ shares under pressure on fears of EU intervention
Shares in Lloyds Banking Group have been under pressure since the bank warned that its merger with HBOS could still fall foul of EU regulations.
At worst, the group could be forced to sell parts of the business, including core elements.
The government-brokered takeover of HBOS by Lloyds TSB last September flouted UK competition rules and left [...]
