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/7698366.stm

The article has changed 4 times. There is an RSS feed of changes available.

Version 0 Version 1
MSPs urged to help block takeover HBOS 'may get government bailout'
(about 3 hours later)
The Scottish Liberal Democrats will seek to unite parliament in making the case to keep HBOS independent. The chancellor has indicated he would consider bailing out HBOS, even if its takeover by Lloyds TSB falls through.
The Edinburgh-based bank is facing a takeover by Lloyds TSB, amid the crisis in the UK banking sector. Alistair Darling has written to the Scottish Government to say the needs of both banks would be reassessed.
Lib Dem leader Tavish Scott asked MSPs to back a Holyrood motion on giving HBOS access to the UK Government's bailout plan to recapitalise banks. It came as the Scottish Liberal Democrats urged MSPs to back a parliamentary motion, demanding HBOS was kept independent.
First Minister Alex Salmond has already expressed a preference to keep HBOS independent. Party leader Tavish Scott said the Edinburgh-based bank should have access to the UK Government's bailout fund.
But he conceded the Holyrood government had to be ready to meet any alternative. In his letter, Mr Darling said the Financial Services Authority watchdog would reassess the recapitalisation needs of both banks, should the takeover not happen.
Speaking ahead of a parliamentary debate on the issue, Mr Scott said: "I hope that parliamentary support in favour of keeping the bank independent will stiffen the resolve of our government to make the case - not to Lloyds TSB - but to the UK Government to use the taxpayers' money that has been invested in the banking sector as a whole to keep HBOS an independent institution." In these few short weeks the global banking system has changed more than it has done in a generation Tavish ScottScottish Liberal Democrat leader
The Scottish Government and Lloyds TSB have pledged to work together to ensure the "best result" amid the bank's proposed takeover of HBOS. There are 17,000 HBOS jobs based in Scotland. Mr Scott told the Scottish Parliament that the circumstances surrounding the proposed £12.2bn HBOS takeover had changed in the wake of the UK Government's £37bn banking bailout.
Fears have been raised many jobs could go if the £12.2bn takeover proceeds, but Mr Salmond told Lloyds TSB bosses in London this week that, if it went ahead, Scotland would be the best place to do business. "A few short weeks ago this takeover was the only game in town," he said.
"The UK Government was correct to make that case, but at that time.
"In these few short weeks the global banking system has changed more than it has done in a generation."
Jobs undertaking
Meanwhile, the issue came up at first minister's questions, when deputy Labour leader Johann Lamont accused Alex Salmond of failing to secure guarantees during his talks with Lloyds TSB bosses this week on protecting jobs and retaining HBOS headquarters functions, if the takeover went ahead.
She told him the first minister was not alone in wanting to protect the interests of Scottish workers, adding: "The fact of the matter is, you sought two guarantees and you secured none."
Mr Salmond replied that he could not say Lloyds TSB gave undertakings in terms of either numbers or decision-making jobs in Scotland.
"The argument being put forward by Lloyds TSB is that until they go through the merger process, until the merger is completed, they are not in a position to look at the organisational structure of any merged organisation," he told MSPs.