Lloyds TSB and HBOS merger

Commenting on the merger of Lloyds TSB and HBOS, Kevin Mountford, head of banking at moneysupermarket.com, said: "This opportunistic high-brow marriage of HBOS and Lloyds TSB that has been waved through by the Government will lose us valuable choice and competition on the high street and consumers will be the poorer for it.

"Worse still, is the potential loss of 40,000 jobs in branches across the UK.

"The Santander takeover of A&L, Lloyds' buyout of HBOS and more frequent building society mergers means we are seeing a reduction in diversity - or the financial equivalent of the rise of Starbucks.

"Even when the brands remain, giving the illusion of choice, the inevitable merging of back-office systems means products will become increasingly homogenous and underwriting criteria will be become centrally controlled.

"A key part of Lloyds TSB and HBOS holding on to depositors' savings will be having the Financial Services Compensation Scheme covering both brands. Given the authorities' keenness to allow this merger despite the reduction in competition and the ensuing job losses, it is highly likely that the FSCS will be allowed to cover large deposits in both Lloyds TSB and HBOS."