Wednesday, Aug 19, 2009
Farcical
The Times: Lloyds makes U-turn on plan to shut down C&G
Lloyds Banking Group today told 930 staff at 164 Cheltenham & Gloucester (C&G) branches that it was not going to sack them after all in a startling U-turn of strategy.
Just two months ago, Lloyds, which is 43-per cent owned by the UK taxpayer, announced that it would close C&G’s entire network.
However, today it said it was “reviewing the decision” and refused to give any reason.
Posted by devo @ 10:46 PM (657 views) Add Comment
6 Comments
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1. devo said...
It is said that the glue holding our financial system together is an amalgam of trust and confidence.
God help us!
2. Crashwatcher said...
They wouldn't want to close their C&G offices after all how are they only going to manage with just a Loyds Branch, a TSB Branch and a HBOS Branch in every high street these clearly aren't enough outlets - any fool can see that (not!)
3. devo said...
The FT has more on this story...
The bank refused to say why it had made the U-turn but it is thought to be connected to its recent application to the European Commission for state aid approval.
Under state aid rules, organisations that receive government support for longer than six months are usually required to restructure their operations to offset the competitive distortions resulting from the aid.
The Commission has already indicated that Lloyds, which rescued HBOS at the height of the banking crisis, will have to make a “viable carve out” and sell assets, including part of its branch network.
Lloyds had originally planned to close the C&G branches in November, but keeping them open now allows the bank to offer up the network as a possible concession to the EC in return for state aid.
Bankers on Wednesday suggested that Lloyds had little else that was obvious for a carve out. “They have almost nothing else to sell and they missed a trick here in the first place by saying they would close it,” said one.
http://www.ft.com/cms/s/0/9b4e44ba-8cff-11de-a540-00144feabdc0.html?ftcamp=rss&nclick_check=1
4. paul said...
I'm sure the senior management planned for this well and this is all part of the long term strategy.
Why else would they get paid so well?
5. devo said...
3. paul said... this is all part of the long term strategy
Paul, you know full well there is NO long term strategy - day-to-day survival is the plat de jour (ha ha) for all levels of society it would appear.
6. Cautiously Pessimistic said...
You don't suppose something shifty is afoot? Is it possible that they could transfer all of the dross on Lloyd's books to C&G and sink it? Or am I being naive?