And there go another 70000 votes
February 13, 2009 5 Comments
Today the HBOS part of Lloyds Banking group announced a loss of Â£10 Billion, while the Lloyds TSB part of the group expected to make a profit of Â£1.3 Billion. With share prices plunging, one wonder what’s going through the mind of the rank and file Lloyds TSB workers at the moment.
Let’s look at the position of this business only a few months ago. As the credit crunch took hold, it was generally felt that Lloyds TSB were sitting pretty and smugly having been cautious with lending, and being in a good position to see the recession through. It had avoided the poisoned chalice of Northern Rock and if it played its cards right, could come out of the other end in a very good position.
Then came along Gordon Brown. His political shacking up of the business with HBOS under the complicit supervision of Lloyds TSB CEO Eric Daniels has transformed the business. Now Lloyds TSB resembles Sir Paul McCartney landed with a demanding and expensive wife.
So what must the staff make of this? As I have a relative who’s a Lloyds employee, I have a little insight. They are furious. Why?, well the banks have a practice of tying there employees down with share options. It’s possibly the only way they can retain staff in such a grim sales driven environment. They’re seeing the shares they’ve saved up for over many years crash. Not simply due to the recession, but the crass decision made by their CEO and sold to him by Gordon Brown.
At least they have a chance to vent their fury within the next 15 months.