HBOS takeover 'good for Scotland'

The takeover of HBOS by Lloyds TSB will be "good for Scotland", one of the bank's bosses has told BBC Scotland.

HBOS communications manager Shane O'Riordain also said the deal would benefit customers and shareholders and denied the business was in "crisis".

Meanwhile, The Scottish Government's economic advisers will meet next week to discuss the £12bn HBOS take over.

Labour demanded public access to the meeting in the national interest, but the call was rejected by the SNP.

Lloyds TSB is to take over HBOS in a deal which will create a banking giant, holding close to one-third of the UK's savings and mortgage market.

Mr O'Riordain told BBC Scotland's Politics Show that the Scottish-based bank had taken a "long and hard view" about its future prospects.

"We put sentiment aside, as you must do in business, and we took the view that this was right," he said.

"Don't judge this deal on the headlines of the last week, that's not what business is about.

"Judge it on where this business will be in two or three years' time. We believe this will be a very strong franchise and therefore good for Scotland."

Mr O'Riordain refused to comment on Scottish First Minister Alex Salmond's attacks on short-selling "spivs and speculators".

LLOYDS vs HBOS

• Branches - Lloyds 1,900; HBOS 1,100
• Customers - Lloyds 16 million; HBOS 22 million
• Employees - Lloyds 70,000; HBOS 72,000
• Savings - Lloyds is the UK's fourth largest savings provider; HBOS is the market leader
• Retail savings balance - Lloyds £65bn; HBOS £139bn

"We've seen unprecedented developments in the last few weeks. In our judgement, the regulators have acted decisively right through that period."

Mr O'Riordain also said he was "very impressed" with the work Mr Salmond and Scotland's opposition parties had done in the past week to help ensure the best possible outcome for Scotland from the takeover.

Next week's meeting of Mr Salmond's council of economic advisers aims to build the case to retain headquarter functions and jobs at the Bank of Scotland.

In a letter to Mr Salmond, Scottish Labour leader Iain Gray said the Scottish people deserved to hear what the Scottish Government's economic experts had to say, and called for a full transcript of proceedings to be published.

A spokesman for the first minister said the council was not intended to be the "butt of Iain Gray's political knockabout" and pointed out that the group reported to the Scottish Parliament.

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Scottish Government
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Lloyds TSB
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Chartered Institute of Bankers in Scotland
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