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Lloyds Shareholders To Sue Over Hbos Deal

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To be fair, they do have a point, and people on here at the time were saying Lloyds buying HBoS was a stupid decision and that Brown must have had something (blackmail) on the Lloyds board to get them to agree to it.

The bank had tens of billions of super-secret-don't-tell-anyone loans from the BoE when Lloyds bought it... if LLoyds shareholders had known the HBoS was basically bankrupt they wouldn't have signed up.

Welcome to the rule of unintended consequences.

Secret loans, plus bank mergers = fraud.

The case is a strong one. Mind you, many shareholders owned both hbos and lloyds. They might have voted for the takeover to try and save something from their hbos holding. It is mathematically possible for such joint shareholders to vote themselves some of the capital from those who hold just one share.

Lloyds bank doesn't appear to have engaged in widespread fraud like other banks. At the end though, they blew that completely with the board lying to its own shareholders about the value of what it was buying.

Edited by leicestersq

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Peston - Banking Commission: retail banking must be ring-fenced

There could be some succour for Lloyds shareholders yet. If George Osborne doesn't follow the Commission's recommendation to force Lloyds to sell off even more of the assets and liabilities than it's currently doing then Lloyds could eventually come out of this with a very powerful position on the High Street. According to Peston, Lloyds had advance notice from the Commission that they were going to make this recommendation so it seems very likely Osborne had similar notice. We should expect an announcement of a decision soon.

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