UK superbank’s shares fall

Trading did not start well on the London Stock Exchange of the new British superbank created by the merger of HBOS and Lloyds TSB.

It is the biggest bank in the UK with more than thirty million customers. The shares dropped by a third in reaction to the huge losses announced by Royal Bank of Scotland as traders expect other banks to follow suit. As one analyst said: “The merged bank has 28 percent of the UK mortgage market and house prices are falling which makes it vulnerable.”More about: Banking

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