FOCUS ON HBOS: HOW A LANDMARK DEAL WENT BAD
October
Blank and Lloyds chief executive Eric Daniels call HBOS chief executive Andy Hornby to discuss the possibility of a takeover, as HBOS struggles with its burdensome property assets.
15 September 08
Gordon Brown approaches Blank at a cocktail party and assures him that competition law will not be an obstacle to any potential takeover of HBOS.
17 September 08
Rumours of the imminent collapse of HBOS are compounded by a ratings downgrade from both Fitch Ratings and Standard & Poor’s, sending the bank’s stock plunging by half to 88p. HBOS later confirms that it is in talks with Lloyds over a deal to create a £30bn “superbank”.
18 September 08
Blank and Lloyds chief executive Eric Daniels unveil the takeover. Blank dubs the agreement a “landmark” deal.
19 January 09
In an interview conducted on the day the deal closes, Blank says: “I believe everything is out there as far as HBOS is concerned. They’ve made three or four statements over the course of last year explaining exactly what their financial position is.”
13 February 09
Lloyds takes a £10bn hit on HBOS, about £7bn of which was from impairments in the HBOS corporate lending division.
5 May 09
Reports emerge that disgruntled shareholders, including Aviva Investors, are preparing to vote against Blank’s re-election at the bank’s June 5 AGM. UKFI gives no guarantee of its support for him.
17 May 09
Blank confirms he will leave the bank before its 2010 AGM.