Oral question asked in the House of Lords, by Baroness Kingsmill (Labour). It was answered by Lord Davies of Oldham (Labour) on Wednesday, 8 October 2008.

Banking: Lloyds TSB and HBOS

Question: To ask Her Majesty’ Government what steps they will take to protect consumers in the event of a merger between Lloyds-TSB and HBOS.

Answer: My Lords, decisions on mergers are generally taken by the competition authorities based on whether there is a substantial lessening of competition. This generally provides the most effective method of protecting consumers. In this particular case, and in the light of the extraordinary stress in world financial markets, the Secretary of State considered that there was urgent need for additional action. He therefore laid an order in the House on 7 October that will enable him to take the final decisions in this case and allow him to consider effects relating to the stability of the UK financial system alongside any competition issues.

Secondary information

Type: Oral question
Reference: 704 c234-5
Session: 2007-08
Oral question type: Lead
Chamber / Committee: House of Lords chamber
Subjects: Consumers Banks Competition Protection Mergers Lloyds TSB Halifax Bank of Scotland
Link: View this Oral question on www.publications.parliament.uk