‘I think the deal stinks’ said one Lloyds shareholder. ‘A lot of people will lose their jobs’, said the former Bank of Scotland CEO. No-one foresaw the full and lasting cost of Lloyds rushed takeover of HBOS in September 2008.
Who has paid the cost in the HBOS crash? Inside HBOS, staff earning £15,000 -£18,000, who were also shareholders, were watching their savings evaporate. Ray Perman continues the story of a banking disaster unresolved to this day.
The events leading up to the crash began in New York, 7 September 2008. A week later the shock waves engulfed Scotland’s oldest bank in Edinburgh.
To mark the tenth anniversary of the financial crisis, Sceptical Scot’s new series focuses on home-made follies; the extraordinary mistakes made by two once revered and typically prudent Scottish institutions: the Bank of Scotland and the Royal Bank of Scotland.