Scots MPs to probe HBOS

By staff

Scottish MPs are launching a probe into Lloyds’ acquisition of HBOS as part of a wider inquiry into the troubled banking sector.

The Scottish affairs committee will meet with union leaders to discuss the impact of the merger on staff and customers, and bank bosses are likely to be called in later to give explanations.

The much-maligned takeover of HBOS by Lloyds resulted in Lloyds posting massive losses last month as the troubled Scottish bank had run up a £10.8 billion deficit for the year 2008.

MPs will apparently also want to look at the effect of the merger on business operations, specifically competition implications and how it will affect banking services.

Should HBOS bosses Andy Hornby and Lord Stevenson face the committee it will be the second time they have had to face difficult questions from MPs.

They, along with the former chief executive and chairman of RBS, faced the Treasury committee last month, when they apologised for their part in the financial crisis.

Mr Hornby said to that committee: “I’m very sorry what happened at HBOS.

“It has affected shareholders, many of whom are colleagues, it’s affected the communities in which we live and serve, it’s clearly affected taxpayers, and we are extremely sorry for the turn of events that has brought it about.”