Dundee SNP

LLOYDS BAIL-OUT EXPOSES CULPABILITY BROWN

Commenting on reports that the UK Government is close to a £250bn bail-out deal with the Lloyds Banking Group, SNP Treasury spokesperson Stewart Hosie MP said the Prime Minister had “sold a con” to the country by pushing through the HBOS / Lloyds merger.

The asset insurance scheme deal will see an increase in the taxpayer’s share in the bank from its current level of 43% to as much as 70%.

Commenting Mr Hosie said:

“It is now plain to see that Gordon Brown sold the country a con with his cut and shut merger of HBOS and Lloyds.

“The Prime Minister boasted about saving the banks, but it is clear that his meddling has made things far worse.

“This confirms the Prime Minister is “culpability Brown”

“Scotland was continually told, and so were the courts, that a merger with Lloyds was the only way to prevent HBOS being nationalised.

“Now we see the Lloyds Group – not only HBOS but Lloyds TSB too, effectively falling into public ownership.

“Gordon Brown’s claims to “save the world” fall further apart every day.

“When Gordon Brown gets to Dundee today he should start by apologising to the employees, account holders and shareholders who were sold a con by the Labour government.”

Commenting on the report in toady’s Observer concerning documents used during the recent court case against the Lloyds/HBOS merger, SNP Treasury spokesman Stewart Hosie MP said;

“The UK Government’s involvement in the Lloyds takeover has long aroused concern.

“For the dossiers used to convince the courts to be kept secret only adds to the suspicion that Gordon Brown and Alistair Darling have something to hide.

“That questions have been raised about the documents still even existing is equally concerning.

“That they are pursuing those who fought to protect shareholders from the bad debts and bad deal that has emerged for court costs is simply ridiculous.

“The clear evidence from the FSA that there was an alternative and that the banks could have been supported as two separate entities – instead of merging their problems into one giant bad bank – throws even more doubt on Government claims it was the only option.”

SNP Treasury spokesperson, Stewart Hosie MP, has demanded assurances from the Halifax Bank of Scotland (HBOS) board today (Tuesday) after receiving complaints from shareholders that they have not received their ballots in advance of this week’s vote on the acquisition by Lloyds TSB.

For shareholders not attending the HBOS shareholders meeting in Birmingham on Friday, the deadline for electronic shareholders was today, while certificated shareholders must vote by tomorrow.

Shareholders have reported not being notified of the electronic ballot and not receiving their voting card for the meeting despite it being scheduled to take place on Friday..

Mr Hosie said:

”Every shareholder must have their say, and it would be outrageous if people did not receive their ballots in time.

“It is bad enough that the UK Government is trying to force a shotgun wedding between HBOS and Lloyds, without shareholders being denied their vote as well.

”I am disturbed to learn from individual shareholders that they have yet to receive their ballots from the bank, and time has all but run out.

“Holding the ballot in Birmingham already makes it harder for Scottish shareholders to get to the meeting now shareholders are missing out on their only other opportunity to vote.

”Bank officials have had weeks to organise and ensure that shareholders receive their papers in good time, and it seems this has been bungled.”

SERIOUS QUESTIONS REMAIN UNANSWERED

Speaking after the vote the SNP forced on the Statutory Instrument that would allow HBOS and Lloyds TSB to merge, SNP Treasury Spokesperson Stewart Hosie MP today (Wednesday) said major questions remained unanswered and this delay allowed people to take stock. He called on the Chancellor to clarify Lord Mandelson comments that UK Government money would only be available to the proposed merged institution.

Mr. Hosie said: “We delayed the vote on the abolition of competition laws to allow HBOS and Lloyds TSB to merge to allow people to take stock. “Irrespective of the outcome of the vote what remains blindingly obvious is that questions which have arisen in the past week remain to be answered.

“Firstly on competition there is now a very real anxiety that along with RBS a merged HBOS/Lloyds TSB would have a virtual duopoly in Scotland; that many branches may close and the cost to business in Scotland due to a lack of competition may be up to £500 billion pounds.

“It is also essential that the comments made by the Trade Secretary Lord Mandelson are now clarified. He’s reported today as saying the Government recapitalisation is, ‘predicated very clearly on the merger of the two taking place’.

“The business community must be told whether that means the £4 billion in preference shares in the merged institution or the total amount of £17 billion announced by the Chancellor on October 13th will be available to both banks in the event a merger does not occur.”