David Robertson, Business correspondent Halifax Bank of Scotland’s (HBOS) £12 billion rescue deal with LloydsTSB has been thrown into uncertainty because of the bank’s request for an emergency capital injection from the government. The deal between HBOS and Lloyds, which was brokered by Gordon Brown, was based on the value of the banks’ shares at the time it was arranged three weeks ago. However, since then the financial markets have fallen dramatically leading to a halving in HBOS’s value. By comparison Lloyds’ shares have fallen by only a third, making its shareholders comparatively worse off if the deal goes ahead. The value of HBOS’s shares is expected to dive even further this week once it asks the government for an estimated £10 billion to strengthen its balance sheet. The government will get shares in the bank in...
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