New banking giant may axe 40,000 jobs

December 10th, 2008 by admin | Filed under Daily News, Global Credit Crisis, Recession, UK Bank Accounts, UK Banks.

The new banking goliath rising from the ashes of Lloyds TSB and HBoS is ready to axe up to 40,000 jobs and 600 branches in a cost cutting strategy.

The Lloyds Banking Group – the new name for the super bank – will face pressure to shrink its balance sheet, lift capital ratios and resume dividends after the merger that is expected to proceed on Friday.

The government-brokered deal to create Britain’s second biggest bank has been attacked as anti-competitive and angered investors on both sides, especially HBOS supporters in Scotland.

A Competition Appeals Tribunal hearing in London rejected claims that Lord Mandelson, the Business Secretary, had acted improperly in supporting Lloyds TSB’s takeover of HBOS were rejected yesterday.

A decision from the tribunal is expected today.

Despite the hearing 96 % of Lloyds investors voted for the merger and HBOS warned the only alternative was nationalisation.

For once, the retail sector had some good news, revealing that Monday was the biggest online shopping day this year, with sales up 14% on the same day last year to £320 million.

John Lewis announced that sales in the week ending Saturday 6 December also saw an all time record for online weekly sales. The previous record, set last year in the week ending Saturday 15 December, was beaten by £500,000 driven by demand in gifts, Christmas decorations, furnishing accessories, home electronics and toys – with Biscuit the Dog proving a particular hit.

The leading department store group has also identified a significant improvement in in-store trading over the course of the last seven days, with sales up 20% week-on-week indicating that Christmas shopping on the high street is moving up a gear.

Woolworth’s administrators, Deloitte, have agreed to sell 50 stores to frozen food retailer Iceland.

Separate deals are in place to sell a further 350 stores to a range of supermarkets and discount stores.

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