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Bank Restructuring Plans, New Bonus Arrangements & Pensions
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Date: 3rd Nov 2009
The Government and Bank have today announced major changes to the Lloyds Banking Group. Under pressure from the European Union and UK Government to create more competition in the UK banking sector, the Bank will be forced to reduce its market share in personal accounts and mortgages through the disposal of parts of the business over the next four years in order to create a new, standalone bank.
The new bank will be created from:
● All Lloyds TSB Scotland branches
● At least 250 Lloyds TSB branches in England and Wales
● All C&G branches
● All C&G savings and certain C&G mortgages
● The Intelligent Finance (IF) business
● The TSB brand
Although this unbundling is not likely to happen very quickly and could take up to 5 years to complete, it will have massive consequences for the staff working in all these areas, most of whom will be given no option but to transfer to work for the new employer.
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