View more on these topics

Blank hints at future in regulation

Outgoing Lloyds Banking Group chairman Sir Victor Blank has hinted that his future may lie in regulation.

In a BBC interview this weekend, Blank, who will be stepping down as Lloyds chairman before its 2010 AGM, told BBC business editor Robert Peston that his future may be in the regulation rather than banking.

He says: “I think I can make a contribution in a wide number of areas which would include governance, which might include regulation, might include the relationship between investors and business and it might even include how businesses are and should be run.”

Blank says he is “disappointed” that he is to step down as chairman of Lloyds: “To rehabilitate Lloyds Banking Group as quick as possible it was necessary to make changes at the top, and I thought the best decision was for me to go, not the chief executive.”

When questioned about the merger with HBOS, Blank says Lloyds TSB was expecting the problems it found within its portfolio, but says it did not expect the speed at which the HBOS book made losses.

He says: “We knew there were concerns with HBOS’ book – with its corporate book, with its buy-to-let book, its self-certified book and so on. But what surprised us was the speed with which the losses came in, and that was because of the unexpected speed of the downturn at the end of 2008 and the start of 2009. What we found in the HBOS portfolio were the problems that we anticipated.”

But Blank is sure that the worst is over for the group. He says: “The impairment levels in the first half of 2009 are as high as they are going to get, they are going to reduce from here.”

In related reports, incoming Lloyds chairman Sir Win Bischoff could be forced to cull the board so as to beef up the banking experience of members. The FSA has revealed it will be assessing the skills sets of banking board members to make sure they are fully qualified in their roles.

Recommended

Enhanced annuities lead by 22%

Enhanced annuities pay out 22 per cent more income on average than conventional annuities, according to MGM Advantage’s new annuity index which tracks the income paid on both products on a quarterly basis.

FSA should be backing profitable small firms

I am starting to wonder if big firms and networks can ever be viable after all the failures and losses of recent years. How ironic it is then that the FSA is trying to exterminate small firms which present the least risk and whose owner/managers have the greatest vested interest in ensuring their successful continuation.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Timing!
    So Lloyds knew all about the problems at HBOS did they? Just that they got the timing wrong!

    I think Sir Victor is showing that his knack of getting his timing wrong is still with him. He hasn’t even left yet and he is already punting for new jobs in regulation of all places.
    The full extent of the problems in Lloyds Group have yet to be crystalised and the European regulators have yet to decide how much of the new entity is going to have to be hived off.

    What a lovely world up there in the clouds!

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com