Banks Oppose Takeover of HBOS by Lloyds TSB

The former chief executives of Bank of Scotland and Royal Bank of Scotland (Sir Peter Burt and Sir George Mathewson) have written to HBOS calling for its chairman and chief executive to resign.
They oppose the takeover and belive the HSOS would be better off if it remains independant and the government has provided them with enough funds to stay independant.

Lloyds TSB argue that the merge wouls save £1.5bn ($2.4bn) a year but this has just raised job loss fears after the takeover.

The leter says :"It is our intention to create a detailed alternative plan that we believe will represent better value for both the HBOS shareholders and stakeholders alike by keeping HBOS as an independent bank,"

One of the letter writters was involved with creting HBOS (when it merged with Halifax to form HBOS)

Theyalso say Sir Dennis and HBOS chief executive Andy Hornby should resign immediately - and that Sir George Mathewson should become the new chairman of the bank and Sir Peter Burt should be its chief executive.

It seems like they are trying to regain control of HBOS again, However the Scottish National Party has been highly critical of the takeover party due to the job loss fears and party due to the fact that HBOS's office is in Edinburgh and this could damage it's reputation as a financial centre.