Whatever the public’s opinion of Lloyds’ takeover of HBOS back in 2008, it doesn’t look like the Government is about to go back on it.

In fact, Chancellor George Osborne has now stated that the takeover cannot be undone: “I don’t think it is possible to break apart the Lloyds/HBOS deal,” he said, when he appeared before the Treasury Select Committee.

Mr Osborne pointed out that the Independent Commission on Banking (ICB) agreed with him on this. You can read more about this here.

The creation of the ICB was announced on June 16th last year. It was asked to look at ‘structural and related non-structural reforms’ to the banking sector in the UK – and to make some recommendations to the Government by the end of September.

The ICB has now published its Interim Report, in which it lays down some proposals on reforms that could improve the stability and competition in UK banking.

Its final report won’t be released until September 12th this year.

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