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| PM says banks want rescue merger | PM says banks want rescue merger |
| (40 minutes later) | |
| Merging Lloyds TSB and HBOS is the best option and still the only way forward, according to the prime minister. | Merging Lloyds TSB and HBOS is the best option and still the only way forward, according to the prime minister. |
| Gordon Brown told the BBC's Politics Show both institutions now want the proposed merger, which has been brought about by the crisis in banking. | Gordon Brown told the BBC's Politics Show both institutions now want the proposed merger, which has been brought about by the crisis in banking. |
| Under the plan, £17bn would be put into HBOS and Lloyds TSB, meaning taxpayers would own about 40% of the merged institutions. | Under the plan, £17bn would be put into HBOS and Lloyds TSB, meaning taxpayers would own about 40% of the merged institutions. |
| The SNP and Liberal Democrats have questioned if the deal should go ahead. | The SNP and Liberal Democrats have questioned if the deal should go ahead. |
| They have called for clarification over the bail-out, arguing that it may still be possible to preserve HBOS. | They have called for clarification over the bail-out, arguing that it may still be possible to preserve HBOS. |
| But Mr Brown said: "We have one offer, which is the Lloyds TSB, it protects the maintenance of the Halifax Bank of Scotland, in merger with Lloyds TSB and if people have another offer then obviously we'll look at it. | But Mr Brown said: "We have one offer, which is the Lloyds TSB, it protects the maintenance of the Halifax Bank of Scotland, in merger with Lloyds TSB and if people have another offer then obviously we'll look at it. |
| "But that's the only offer on the table." | "But that's the only offer on the table." |
| Allowing this merger will mean less competition on every Scottish high street Tavish ScottLib Dem leader "I think you'll find that the merger between Lloyds TSB and HBOS is wanted by both institutions now and I think people know that there are issues that have got to be resolved and are better resolved by the merger." | |
| He added: "The better solution is for them to go with what is a very strong bank - Lloyds TSB." | He added: "The better solution is for them to go with what is a very strong bank - Lloyds TSB." |
| It comes as the Liberal Democrats are to lead a debate in the Scottish Parliament calling for HBOS to remain an independent Scottish bank. | |
| Lib Dem leader Tavish Scott said: "The Scottish business community's concerns about this merger grow by the day. Every small business and account holder is worried by the potential loss of branches, staff and expertise. | |
| "Allowing this merger will mean less competition on every Scottish high street. If parliament speaks with one voice then the UK Government will have to think again." | |
| Scottish First Minister Alex Salmond has sought to clarify whether the bail-out funding was dependent on the merger going ahead. | Scottish First Minister Alex Salmond has sought to clarify whether the bail-out funding was dependent on the merger going ahead. |
| The UK Government has said the problem for HBOS was not capitalisation but liquidity, and that it would continue to struggle in current market conditions. | The UK Government has said the problem for HBOS was not capitalisation but liquidity, and that it would continue to struggle in current market conditions. |
| But SNP MSP Alex Neil said: "This failure of the UK Government, shareholders in both banks, to act in Scotland's interests underlines the dangers of sleepwalking into a takeover without proper consideration of the full implications for Scottish jobs and decision making." |