Lloyds boss announces retirement

Posted by Rob Jones on 21st Sep 10

Lloyds banking boss Eric Daniels has announced he intends to step down. The 59-year-old said he would remain until a replacement was found some time next year. Sir Win Bischoff, the group’s chairman, said he and the rest of the board were extremely grateful to Mr Daniels for all he had done for the company since his appointment in 2003.

Sir Win added that the firm’s 2008 acquisition of Hbos banking group and its rapid integration into the Lloyds group, along with a faster than expected return to profit during a time of upheaval, was all testament to Mr Daniels’ disciplined leadership.

The takeover of Hbos in September 2008 has been heavily criticised. The deal took place at the height of the banking crisis and forced Lloyds to look for a government funded bailout as its finances were severely undermined. The rescue package cost the then Labour government £20 billion and forced it to take a large stake in the Lloyds group.

In the first half of this year, Lloyds was able to announce a return to profit with a pre-tax figure of £1.6 billion. This was compared to a loss of £4 billion a year earlier. Between 2008 and 2009, because of massive losses accumulated by Hbos which were allegedly not revealed to Lloyds, the group lost £13 billion.

Lloyds Banking Group shareholders are currently trying to recoup some £14 billion which they claim was lost after the bank agreed to takeover Hbos. The shareholders are saying that Lloyds bosses and the then Chancellor, Alistair Darling, withheld information about the deal before the takeover was finalised.