I may be missing something here, but if the government is going to pump cash into both Lloyds and HBoS, in return for shares, why does the merger between them still need to go ahead?
The rules were only waived to allow it because HBoS was thought to be about to crash. Now, presumably, the immediate danger has passed because of the government rescue package. Surely it’s no longer in the public interest to create a new mega-bank which would have a third of the mortgage market and, if it were to fail, could take the whole economy down with it.
Well you would have thought so. But maybe it’s not in the best interests of New Labour and their friends.
It worries me too…
It looks to me like a face-saving thing for Labour. They supported the idea when everyone, themselves defintely included, was in severe panic mode and now they don’t have the guts to admit that they are creating something that goes against everything the OFT tries to prevent. But the new mantra is that capitalism is dead and central control was always better. Do they never learn? (you don’t have to answer that.)