A Fool and His Money

Yes that’s correct. Due to investment banks Lehman Brothers and Merrillin the US falling into a irresolvable credit crises, this has had a severe side effect to the financial markets around the world including the UK and Japan.

Under the British law, for Lloyds to take over HBOS would not be permitted as it would lead to an increase in competition other banks cannot match but due to the intensity of this situation, the government has allowed this “transaction” to take place. The deal is worth £12.2 million.

If this goes ahead, up to 40’000 people could lose their jobs. According to Lloyds, this merger should save the combined companies £1 Billion a year by 2011.

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