Lloyds TSB merge with HBOS

After the collapse of one of America's biggest banks, Lehman Brothers and the continued sharp fall of HBOS's shares (from over 900 to a low of 88p) it looked like curtains for Britain's biggest mortgage lender.

However the prudent Lloyds TSB have made an offer to takeover HBOS. The deal is not done yet and other banks may eye up the chance to become the UK's biggest bank.

However there may be repercussions for stakeholders in the business such as customers and employees.

Customers will see less competition in the high street and credit may once again become hard to achieve, especially as Lloyds TSB are famous for being more stringent in their loans than some others.

Employees will surely face redundancies as there will be several branches in similar locations and staff doing the same job.

The major benefit is that at least the deal ensures the survival of one of the UK's main banks. After Northern Rock and now the shaky decline of the HBOS share price people on the high street and in the City must be wondering who is next?