LloydsTSB - getting smaller and smaller

Just over a year ago LloydsTSB were encouraged into a merger with HBOS. Lloyds was then a sound if boring and staid traditional bank. HBOS was riddled with toxicity, and doomed.

Why did the merger happen?
In essence because the government wanted it to happen. They supplied cash and waived the merger through the Monopolies Commission. Is it cynical to see that the prospect of the loss of a major bank in Scotland and many jobs/votes, was their motivation? It was also a cheaper solution to the government than Northern Rock had proved to be.

The bank's motives were to become a major player by merger, - in fact to become the largest group in the UK. They were greedy and ambitious.

Now the consequences are evident. The new group has been told it must sell over 600 branches, and major elements in the group.

There will also be major job losses, partly for operational reasons and partly to improve the share price when the bank divests. The chickens have come home to roost.