Bank gave secret 62bn loan to HBOS and RBS

THE Bank of England has revealed for the first time that it lent Royal Bank of Scotland (RBS) and HBOS &pound;61.6bn in a bid to save the financial system from collapse.<br /><br />Governor Mervyn King yesterday admitted a secret deal had been done last November as the lenders struggled for survival.<br /><br />But the undercover nature of the loans led to Lloyds TSB shareholders losing millions of pounds after the bank went on to buy HBOS, according to critics.<br /><br />Conservative MP Michael Fallon said: &ldquo;We certainly should have been told after that, and certainly Lloyds shareholders, who after that voted to merge with HBOS were kept in the dark about the scale of these losses.&rdquo;<br /><br />King said the loans had been repaid in full by January this year.<br />