Lloyds TSB takes over HBOS for $22 billion

Source: CCTV.com | 09-19-2008 08:56

Britain's largest provider of checking accounts, Lloyds TSB, has announced a 22-billion US dollar deal to take over the struggling Halifax Bank of Scotland, which is Britain's biggest mortgage lender. The deal makes HBOS (H-BOSS) the latest victim of the global credit crisis.

Pedestrians walk past an HBOS sign outside the company  buildings, in Edinburgh, Scotland on September 18, 2008. (David Moir/Reuters)

The deal between Lloyds and H-BOS on Wednesday created a dominant mortgage and savings bank.

More than one in four mortgages in the UK will now be provided by the same company. Such a deal would in normal times be considered in contravention of competition rules.

But the British government says it will facilitate the deal to safeguard financial stability.