This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/scotland/edinburgh_and_east/7621153.stm

The article has changed 16 times. There is an RSS feed of changes available.

Version 4 Version 5
Salmond attacks financial 'spivs' Salmond attacks financial 'spivs'
(20 minutes later)
The first minister has launched an outspoken attack on the "spivs and speculators" he blames for targeting Scottish-based bank HBOS.The first minister has launched an outspoken attack on the "spivs and speculators" he blames for targeting Scottish-based bank HBOS.
Alex Salmond told BBC Scotland that HBOS was soundly based - and that financial regulators should have acted to forestall the speculative attack.Alex Salmond told BBC Scotland that HBOS was soundly based - and that financial regulators should have acted to forestall the speculative attack.
HBOS is in merger talks with Lloyds TSB after its share price plummeted.HBOS is in merger talks with Lloyds TSB after its share price plummeted.
Meanwhile, a union warned any merger could be "catastrophic" for the 17,000 HBOS staff based in Scotland.Meanwhile, a union warned any merger could be "catastrophic" for the 17,000 HBOS staff based in Scotland.
Mr Salmond praised both HBOS and Lloyds TSB, but said any merger between the two should be based on measured discussion, not a "shotgun marriage" driven by unwarranted speculation.Mr Salmond praised both HBOS and Lloyds TSB, but said any merger between the two should be based on measured discussion, not a "shotgun marriage" driven by unwarranted speculation.
HBOS has 320 branches in Scotland. The group has about 1,100 branches and employs 65,000 people across the UK, with a further 10,000 based abroad. I am very angry that we can have a situation where a bank can be forced into a merger by basically a bunch of short selling spivs and speculators Alex Salmond MSPFirst Minister
And he accused financial regulators the Financial Services Authority of leaving HBOS vulnerable to speculative attack by failing to act despite finding the banking giant was properly funded and had a good capital ratio.
"I am very angry that we can have a situation where a bank can be forced into a merger by basically a bunch of short-selling spivs and speculators in the financial markets," he said.
"We should not have situations where well capitalised, properly funded financial institutions are subject to incredible speculative attack, and that drives them into decision making which they otherwise might not have done.
"You have got to put the hems on that sort of activity, otherwise we will have a succession of companies going through the same process. All financial regulators have got to wake up to where we are at the present moment."
HBOS has 320 branches in Scotland, with its headquarters in Edinburgh.
The group has about 1,100 branches and employs 65,000 people across the UK, with a further 10,000 based abroad.
Compulsory redundanciesCompulsory redundancies
Lloyds TSB has 70,000 staff in the UK, including 7,200 in Scotland, and a total of 1,900 branches, including 160 under the Cheltenham and Gloucester banner.Lloyds TSB has 70,000 staff in the UK, including 7,200 in Scotland, and a total of 1,900 branches, including 160 under the Cheltenham and Gloucester banner.
The Unite union said the merger talks had left the two banking groups' combined 24,000 staff in Scotland fearing for their jobs.The Unite union said the merger talks had left the two banking groups' combined 24,000 staff in Scotland fearing for their jobs.
The union warned it would not accept any compulsory redundancies if the proposed merger goes ahead, and urged both banking groups to take a "socially responsible approach" to the deal.The union warned it would not accept any compulsory redundancies if the proposed merger goes ahead, and urged both banking groups to take a "socially responsible approach" to the deal.
HBOS customers give their views about the bank and the merger talksIn picturesHBOS customers give their views about the bank and the merger talksIn pictures
The Scottish CBI declined to comment on the merger talks.The Scottish CBI declined to comment on the merger talks.
The Liberal Democrats' Scottish leader, Tavish Scott, said: "The enormous short-term financial pressures have understandably led to these talks.The Liberal Democrats' Scottish leader, Tavish Scott, said: "The enormous short-term financial pressures have understandably led to these talks.
"But customers need to know that banking regulators are on their side because a merger of these two will mean less competition.""But customers need to know that banking regulators are on their side because a merger of these two will mean less competition."
Ken Murray, of Blue Planet Investment Management, said: "A perceived weakness in HBOS was its reliance on wholesale funding - although in reality that was not the weakness it was made out to be in the press.Ken Murray, of Blue Planet Investment Management, said: "A perceived weakness in HBOS was its reliance on wholesale funding - although in reality that was not the weakness it was made out to be in the press.
"That has made the bank, I suspect, receptive to an approach from Lloyds TSB because they can see that the combined entity makes a lot more sense than the two separate entities.""That has made the bank, I suspect, receptive to an approach from Lloyds TSB because they can see that the combined entity makes a lot more sense than the two separate entities."
The fallout from the potential merger and the implications for the Scottish financial sector will be examined in an extended edition of Newsnight Scotland on BBC Two from 2300 BST.The fallout from the potential merger and the implications for the Scottish financial sector will be examined in an extended edition of Newsnight Scotland on BBC Two from 2300 BST.