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Bank chief plays down job fears | Bank chief plays down job fears |
(20 minutes later) | |
The chief executive of Lloyds TSB in Scotland has denied the £12bn takeover of HBOS would lead to thousands of compulsory redundancies in Scotland. | The chief executive of Lloyds TSB in Scotland has denied the £12bn takeover of HBOS would lead to thousands of compulsory redundancies in Scotland. |
Speaking on BBC Radio Scotland, Susan Rice said she was unable to say how many jobs would be affected by the proposed £1bn efficiency programme. | Speaking on BBC Radio Scotland, Susan Rice said she was unable to say how many jobs would be affected by the proposed £1bn efficiency programme. |
First Minister Alex Salmond said he understood the merged bank would be run from the Mound in Edinburgh. | First Minister Alex Salmond said he understood the merged bank would be run from the Mound in Edinburgh. |
But he said questions remained over the degree of autonomy Scotland would have. | But he said questions remained over the degree of autonomy Scotland would have. |
HBOS, formed from a merger of Halifax and the Bank of Scotland seven years ago, agreed to a deal with Lloyds TSB after a run on HBOS shares. | HBOS, formed from a merger of Halifax and the Bank of Scotland seven years ago, agreed to a deal with Lloyds TSB after a run on HBOS shares. |
The HBOS group has about 17,000 staff in Scotland, while Lloyds TSB has more than 7,000 employees. | The HBOS group has about 17,000 staff in Scotland, while Lloyds TSB has more than 7,000 employees. |
Lloyds TSB has dismissed claims that up to 40,000 posts could be lost in the UK but has refused to rule out compulsory redundancies. | Lloyds TSB has dismissed claims that up to 40,000 posts could be lost in the UK but has refused to rule out compulsory redundancies. |
Ms Rice said it would take months for the scale of any job losses to become clear. | Ms Rice said it would take months for the scale of any job losses to become clear. |
She said: "We don't have the models and the structures for going forward we can't put a number on what will happen to jobs in Scotland. | She said: "We don't have the models and the structures for going forward we can't put a number on what will happen to jobs in Scotland. |
"But I think what everyone has to keep in mind is that the vast majority of staff in any bank are customer-facing. If we bring two banks together, we bring together the customer bases and we still need all those staff to deal with our customers." | "But I think what everyone has to keep in mind is that the vast majority of staff in any bank are customer-facing. If we bring two banks together, we bring together the customer bases and we still need all those staff to deal with our customers." |
Ms Rice said it would take months to determine the scale of the job losses | |
Major questions | Major questions |
Lloyds TSB has given assurances that it would continue to use the HBOS headquarters in Edinburgh after the takeover and would carry on printing Bank of Scotland notes. | Lloyds TSB has given assurances that it would continue to use the HBOS headquarters in Edinburgh after the takeover and would carry on printing Bank of Scotland notes. |
Also speaking on BBC Radio Scotland, Mr Salmond gave a cautious welcome to Ms Rice's comments but said two major questions remained. | Also speaking on BBC Radio Scotland, Mr Salmond gave a cautious welcome to Ms Rice's comments but said two major questions remained. |
He said: "One, is the extent of the rationalisation to take place as a result of the overlapping branch structures. | He said: "One, is the extent of the rationalisation to take place as a result of the overlapping branch structures. |
"And secondly, and equally importantly, is the degree of decision making, autonomy and group operation, that's genuine head office operations, which will continue in Scotland." | "And secondly, and equally importantly, is the degree of decision making, autonomy and group operation, that's genuine head office operations, which will continue in Scotland." |
Mr Salmond said the Scottish Government would use the coming months to argue and lobby for the advantages of Scotland as a financial centre from a cost and efficiency point of view. | Mr Salmond said the Scottish Government would use the coming months to argue and lobby for the advantages of Scotland as a financial centre from a cost and efficiency point of view. |
He said he arranged an emergency meeting with the Financial Sector Advisory Group for Tuesday 23 September to "mobilise" the heart of the Scottish economy. | He said he arranged an emergency meeting with the Financial Sector Advisory Group for Tuesday 23 September to "mobilise" the heart of the Scottish economy. |
'Too late' | 'Too late' |
Mr Salmond welcomed the Financial Services Authority's (FSA) move to impose temporary restrictions to short-selling, the stock trading technique blamed for an HBOS share price slump, but said the move had come too late for the Bank of Scotland. | Mr Salmond welcomed the Financial Services Authority's (FSA) move to impose temporary restrictions to short-selling, the stock trading technique blamed for an HBOS share price slump, but said the move had come too late for the Bank of Scotland. |
He said: "Of course it should have happened sooner. Frankly it's a bit late for the Bank of Scotland but it's been done now and that's going to help, along with liquidity moves co-ordinated across the market in stabilising the situation." | He said: "Of course it should have happened sooner. Frankly it's a bit late for the Bank of Scotland but it's been done now and that's going to help, along with liquidity moves co-ordinated across the market in stabilising the situation." |
Meanwhile, SNP backbencher Alex Neil has described reports that HBOS chief executive Andy Hornby will get £2m worth of shares in Lloyds on completion of the takeover as "shameful". | Meanwhile, SNP backbencher Alex Neil has described reports that HBOS chief executive Andy Hornby will get £2m worth of shares in Lloyds on completion of the takeover as "shameful". |
He said: "This is totally immoral and unacceptable at a time when thousands of people across the country are worrying about the safety of their jobs and their deposits." | He said: "This is totally immoral and unacceptable at a time when thousands of people across the country are worrying about the safety of their jobs and their deposits." |
Mr Neil suggested the bank chief should be made to return any financial rewards. | Mr Neil suggested the bank chief should be made to return any financial rewards. |
He said: "Andy Hornby should be forced to give that back and if he had any sense of honour he would turn it down." | He said: "Andy Hornby should be forced to give that back and if he had any sense of honour he would turn it down." |