Nationalisation of HBOS was an option
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Speaking today at a Treasury Select Committee meeting, Jim Cousins, a member of the committee, revealed that the government was considering nationalising HBOS, while takeover talks were happening between the bank and Lloyds TSB.
Cousins says a report by the National Audit Office shows that on 16 September 2008 the Treasury considered informing HBOS that it would have to close to new business until a rescue package could be arranged.
Eric Daniels, group chief executive of Lloyds Banking Group says it was aware the government felt HBOS had problems.
He says: “The government made it very clear to us that they were concerned about the future of HBOS and made it clear that it was considering other options.”
Cousins hit back and asked why Daniels then made shareholders offer to pay £2.32 per share for a business that was “effectively bust” on 16 September.
Cousins says: “On 16 September, was it the government and tripartite authority that hoodwinked you? or did you hoodwink your shareholders?”
Daniels replied: “I find that a difficult questions to answer. I don’t believe anyone was hoodwinked.”
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Readers' comments (1)
Anonymous | 12 Jan 2010 10:07 pm
Does Mr daniels know what "HOODWINKED" Mean.or for that matter what his fiduciary obligation to the shareholders is.?
Has this man any moral standing.?
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