HBoS + Lloyds TSB

This merger will create a banking giant that can in time enter Europe's top 5 banks alongside RBS. The IT systems implications, risk management, risk accounting will be a massive £ billion + series of projects lasting years - easier in some respects than the take-over and break-up of ABN AMRO, but in other respects harder. The best solution will be to retain the separate brands within a new holding group given that the fundamentals of both banks are sound even if there may now be a combined exposure to structured products, CDOs etc., that are variously toxic will be close to £300bn.