£14Bn claim over HBOS deal looms for Lloyds group

14 June 2010

Lloyds Action Now, an association set up by shareholders of Lloyds TSB, has started legal action to recoup up to £14bn members claim to have lost as a result of the merger with HBOS.

The group has sent legal letters to the Treasury, Lloyds Banking Group chairman Victor Blank and chief executive Eric Daniels demanding compensation.

Shareholders say they should have been told the Bank of England had advanced HBOS around £24.5bn in October 2008 but this was not mentioned before the takeover.

But a spokeswoman for Lloyds group says: “We will defend this. We provided thorough information to shareholders.”

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