View more on these topics

Comments spark speculation on Abbey takeover

A Call by Lloyds TSB for the government to relax banking merger rules has led to speculation in the City that the bank is set to resume its attempts to acquire rival Abbey.

The speculation began after comments made by Lloyds TSB chairman Maarten van den Bergh at a banking conference last week. At the event he questioned secretary to the Treasury Ruth Kelly on why banks should not be allowed to consolidate further.

The comments seemed to have an immediate positive effect with Abbey&#39s share price jumping 6.75p to 474.75p.

A spokesperson for Abbey refuses to comment on the speculation but says that the share price rise was in no way a result of the Lloyds chairman&#39s comments. Lloyds TSB&#39s press office makes a similar denial, stating that the company&#39s plan is for organic growth rather than mergers.

Three years ago the government stepped in to halt a £18bn bid by Lloyds for Abbey.



The Bank of England&#39s MPC committee today voted to raise interest rates by 0.25%. A statement from the Bank says: “The global economic recovery is continuing. In the United Kingdom, official data and business surveys suggest that output growth remains around, or above, trend. Household spending, public consumption and investment have all grown strongly and […]

Elephant Loans appoints BDM

Elephant Loans has appointed Mike Parker to the newly-created post of business development manager. Parker takes up the position 16 months after joining the company as sales manager within the secured lending division. In his new role Parker will be directly responsible for the management of Elephant Loan&#39s broker services, providing professional introducers with a […]

First Active joins Genesis Direct lending panel

Genesis Home Loans has become one of the first firms to appoint First Active to its lender panel for its direct submission service, Genesis Direct. This means First Active will offer its products to intermediaries via Genesis&#39 direct submission route. The Royal Bank of Scotland-owned brand is launching with two low rate mortgages: a two-year […]

Steely MPC cools long-term swap rates

Short-term swap rates have gone up but long-term ones have actually come down, presumably as a result of the Monetary Policy Committee&#39s willingness to increase base rates, as demonstrated last Thursday. • One-year money is up 0.05% to 5.31%• Two-year money is up 0.02% to 5.47%• Three-year money is unchanged at 5.55%• Five-year money is […]


News and expert analysis straight to your inbox

Sign up